This month’s closed case round up feature IRS mistakes, local small businesses, and a dishonest CPA that left their client high and dry.
Case #1: Our client was a disabled veteran who was barely able to make ends meet and owed the IRS over $100,000. His problems started shortly after his father died and he became a trustee for his father’s investments. Our client did not receive the letters the IRS sent him and didn’t realize he owed money until it was too late. Living on less than $1,000 a month, our client ended up getting levied, with the IRS taking over $100 out of his disability checks. We were not only able to get his levy released, but we were also able to put him into a currently non-collectible status saving him about $112,709 in the process. Now our client receives his full disability check and can live without fear of owing money to the IRS.
Most contractors know that you can deduct a lot of your mileage on your taxes, but many don’t know that mileage can be your BIGGEST tax deduction each year.
If you’re an independent contractor who drives back and forth from job sites, you can deduct the mileage and the expenses for the miles you drive. If you drive from one job site to another, that mileage is deductible as well. As long as each site is a temporary job site, all the miles you drive to and from, should be deductible.
When you’re enjoying your summer vacation, the last thing you want to think about is taxes. But most people aren’t aware of the tax implications that comes with residential and vacation home rentals.
If you receive money for the use of one of your personal residences, that generally requires reporting the rental income on your tax return. It could also mean that certain expenses for that home can be used as deductions.
Our growing tax resolution firm is looking for a Marketing Intern. This role assists with various duties and must be highly organized, creative, detail-oriented, great with time management, have excellent writing skills and be able to work independently with little supervision. The intern will work predominately with the Marketing Coordinator, assisting with tasks and certain projects. The ideal candidate will be working towards a marketing degree or a degree in a related field. The internship is paid.
The IRS is warning people about a new scam that involves their Electronic Federal Tax Payment System (EFTPS). The new scam involves a scammer calling a taxpayer and claiming they are from the IRS. The scammer then tells the taxpayer that two certified letters allegedly sent to the taxpayer in the mail have been returned as undeliverable. The scammer then threatens to arrest you if a payment is not made through a prepaid debit card. The scammer says the card is linked to the EFTPS system, when in fact it is controlled entirely by the scammer. The taxpayer is also warned not to contact their tax preparer, their attorney or their local IRS office until a payment is made.
The IRS wants to remind U.S. citizens living and working abroad that they must file their 2016 tax return by June 15th. The June 15th deadline is available to U.S. citizens and resident aliens abroad, including taxpayers with dual citizenship. A taxpayer must file an income tax return, even if they qualify for a tax benefit like the Foreign Earned Income Exclusion or the Foreign Tax credit that could reduce or eliminate their U.S. tax liability. A taxpayer qualifies for the June deadline if both their tax home and abode are outside the U.S. and Puerto Rico. Those serving in the military outside the U.S. also qualify for the June 15th date. When filing, make sure to attach a statement indicating which situation applies to you.
Your next collections request might not come from the IRS. That’s because the IRS has implemented a new private collections program for certain overdue federal tax debts. The new program allows four designated contractors to collect outstanding tax debts on the governments behalf.
Starting this summer, any taxpayer who wants to request a letter ruling, a closing agreement, and other certain rulings from the IRS will need to pay the user fee electronically. The IRS will now be using the Pay.gov system to deal with taxpayer fee payments. Pay.gov allows people to pay for a variety of government services. Users can use a credit or debit card or can have funds withdrawn electronically from checking or savings account. In the past, users wanting to request rulings could only pay the required user fee by check or money order.
As we enter severe weather season, it’s important to keep you and your loved ones safe. Whether you are at your home or business, you should have an emergency plan ready and practice it often so you’re ready when disaster strikes. Along with keeping yourself safe, you should also take some time to make sure your records and your financial future are safe as well.
With more Americans than ever burdened by student loan debt, many are seeking out options for forgiveness or loan cancelation.
The good news is the Consumer Financial Protection Bureau estimates that one-fourth of the American workforce may be eligible for these forgiveness programs.
However, the process for obtaining forgiveness may be complicated and lengthy, and some programs may result in a large tax bill.