CHARITABLE GIVING-YEAR END STRATEGIES

Below are some helpful tips to reduce your taxes while helping a well-deserved charitable organization.   Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of the year count for that year. This is true even if the credit card bill isn’t paid until the next calendar year. Also, checks count for this year as long as they are mailed this year and clear, shortly thereafter.   Check that the organization is qualified. Only donations to qualified organizations are tax-deductible. IRS Publication 78 lists most organizations that are qualified to receive deductible contributions. In addition, churches, synagogues, temples, mosques and government agencies… Read More

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Has your business growth plateaued?

Do you feel that you have plateaued in your business? Can’t seem to reach that next level of growth? I know that feeling all too well, guys! I learned that solid growth in business does not happen by accident.  It takes honest analysis, planning, and execution.  We are indeed big dreamers; otherwise we would never have ventured into small business ownership, but solid growth takes planning, too. Realistic goal-setting allows an owner to judge performance over time and make changes when necessary to achieve intended goals. Although a small business might have experienced a phenomenal growth curve in the past with excellent execution, it cannot automatically be assumed that the… Read More

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The Dreaded IRS Letter

Have you ever received a letter regarding your tax return from the Internal Revenue Service (IRS)? doesn’t exactly create a warm, fuzzy feeling. In fact, IRS correspondence often conjures up a feeling of dread, some of which is not warranted. The first actions to take when receiving such a letter are to remain calm and read the correspondence. Ignoring it is the most common way to create an even greater issue. Letters from the IRS generally fall into the following categories: – Request additional information – Refund due – Notification of an adjustment on your return – Address change confirmation – Appointment scheduled for an audit. – Certified letter (Most… Read More

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7 Mistakes Business Owners Make

Over the years I have identified common mistakes that business owners make. Since the March 15th deadline for Partnerships and Corporations is looming; I feel this is the most appropriate time to examine common mistakes, and provide helpful tips to avoid these mistakes. But most importantly you can use these tips moving forward in 2017. Let’s examine: Misclassification of Loans Made to Business- Owners borrow and make personals loans to their business. But often, these transactions aren’t properly recorded as loans and could be classified as revenue that will be taxed. Tip: Identify these transactions and advise your accountant or tax professional of non-revenue deposits made to your business. Maintaining… Read More

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Innocent Spouse Tax Relief-Do You Qualify?

Often in divorce we rarely consider the possible consequences of filing joint returns. Maybe when you signed tax returns, you may have not been privy to certain information. Perhaps the former spouse underreported income, or claimed false deductions unbeknownst to you. After your divorce you started receiving notices from the IRS for joint tax returns.  Although you had no knowledge, the IRS can enforce collections from both parties involved.  In such a case, you may want to apply for innocent spouse relief if your former spouse understated taxes while you were both married. Understatement of taxes is derived from underreporting income, or false deductions or credits. To qualify you must… Read More

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Victims of IRS Identity Theft-The Dilemma of Obtaining a Loan

A fraudulent tax return was filed for a refund which created a conundrum for my client when he applied for a business loan. He owes what is considered a ‘’large dollar” amount to the IRS.  A fraudulent return was filed – IRS applied the amount to a prior year tax balance for which my client had an installment agreement.  The fraudulent refund was enough to pay off that year.  Subsequently, once the IRS realized the refund was fraudulent; the amount was reversed, and the original tax balance was restored.  Now, I understand this was the correct IRS procedure, but the IRS computer defaulted his installment agreement; although, he is paying… Read More

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The Dreaded IRS Letter or Notice-What should you do?

Have you received a letter from the Internal Revenue Service (IRS)? It doesn’t exactly create a warm, fuzzy feeling. In fact, IRS letters often conjures up feelings of dread and fear. The first action to take when receiving such a letter is to remain calm and read the correspondence carefully. Take note of the date provided for you to respond. Ignoring an IRS letter can exacerbate the situation. Furthermore, always pick up IRS certified letters from the post office. Keep in mind that the IRS will never initiate correspondence with you via e-mail. Beware of phishing to extract personal information under the disguise of collecting information “from the IRS.” Letters… Read More

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Are You a Victim of IRS Identity Theft? Here is What to Expect.

Treasury Inspector General for Tax Administration suggests the IRS could lose $21 billion to tax fraud over the next five years. While these numbers continue to increase, you could potentially become a victim of tax fraud. All the crooks need is your name and social security number. Aside from a delay in receiving your refund; there are a few other implications. Here is what you can expect while you have an open ID theft case with the IRS: IRS Collection Notices– You may receive notices demanding you repay the refund you never received (this notice is the most troubling). Contact the IRS immediately and inform them you are a victim… Read More

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Has It Been Years Since You Filed a Tax Return?

You have not filed your taxes in years and the situation worsens as time goes by-feelings of dread and fear consume you. There is a good chance that you may be due a refund; however, you must request a refund within three years of the due date of the return. Another key point for filing those tax returns; the IRS ten year statute of limitations for collections. In other words, the tax balance will disappear after ten years if there are no other legal actions to toll the statute such as bankruptcy. However, the statute does not commence until tax returns are filed. The first step is to contact an… Read More

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The rise of IRS identity theft will likely delay tax refunds-Change your withholdings.

With the rise of identity theft, the IRS will likely delay tax refunds and increase audits in the future. According to the Taxpayer Advocate, identity theft cases jumped 157% from fiscal year 2011 to fiscal year 2013; this clearly shows no slowing down of IRS identity theft in the near future. Do you use the IRS as a savings institution? Does it make you feel good to receive a large tax refund to do those much needed home repairs? Well, now is the time to change your thinking, because you may not be able to get your refund when expected from the IRS. Due to the identity theft epidemic the… Read More

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