Martin Cantu, EA - Tax Consultant - Tax Relief Services Blog

  Fairly soon taxpayers will begin receiving IRS collection notices after several years of hiatus during the COVID outbreak. For more information of this development check out this link.      This will trigger the flood of national Offer-in-Compromise mills to put out their “settle your tax debt for pennies on the dollar” and “The IRS writes off millions of tax debt each year”. Both true statements but read the fine print. You must qualify. Ahh, and therein lies the rub. How do I qualify and keep my country club membership, my Tesla lease and shopping at Whole Foods? The short answer is you can’t. Pro Tip - For more information on What is an Offer in Compromise, check out my web page on this subject.   But what about those taxpayers in the middle – who have legitimate, OIC worthy tax situations? How do they communicate that to the OIC processor? Enter the tax artist.   Form 433A is a complete, in your face, disclosure of your entire financial ...

  The IRS announced this week that it was providing about $1 billion in penalty relief to taxpayers who should have received collection notices during the pandemic - specifically applying to 2020 and 2021 tax returns.  The Press Release   has several nuggets beyond the headline penalty relief. These nuggets provide guidance on several topics. Among the interesting items: Quoting from the Press Release - Given this unusual situation, the IRS is taking several steps in advance of resuming normal collection notices for tax years 2020 and 2021 to help taxpayers with unpaid tax bills, including some people who have not received a notice from the IRS in more than a year. (Italics added). This penalty relief is automatic. Eligible taxpayers don't need to take any action to get it. Eligible taxpayers who already paid their full balance will benefit from the relief, too; if a taxpayer already paid failure-to-pay penalties related to their 2020 and 2021 tax years, the IRS wil...

  Individuals increasingly turn to specialized accounts like Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to navigate the complex tax landscape, considering healthcare costs as a significant aspect of financial planning. These accounts offer unique tax advantages and considerations that can significantly impact on your overall financial well-being. Using one of these plans may allow you to lower your tax bill and allows you to maximize the use of your health care dollars – both important considerations in and out of the tax arena. In this article, we will explore the ins and outs of HSAs and FSAs, helping you make informed decisions about your health-related financial planning.   CAVEAT – While this is tax centered discussion, I subscribe to the complex theory of “don’t let the tax tail wag the dog.” By this I mean that while tax considerations are present in most business and personal financial decisions, there may be considerations beyond tax in y...

  Tax season is upon us once again, and for many, it can be a daunting and confusing time. Between gathering documents, understanding deductions, and ensuring accuracy, the process can feel overwhelming. But fear not! This guide will help you navigate the maze of tax preparation and filing with confidence.   Step 1 - Gathering Your Documents:   The first step to successful tax preparation is gathering all necessary documents. This includes:   W-2 forms: These forms report your wages and salaries earned from employers. 1099 forms: These forms report income received from non-employee sources, such as self-employment, freelance work, or investments. 1098 forms: These forms report mortgage interest paid. 1095 forms:   These forms report health insurance information. Receipts and documentation: Keep track of any receipts or documentation for deductions and credits, such as charitable donations, medical expenses, or business expenses. Bank Statem...

  Tax season is right around the corner, but the complexities and controversies surrounding the US income tax system remain a constant source of discussion. From concerns about fairness and inequality to the challenges of navigating a labyrinthine code, the issues at hand are multifaceted and warrant careful consideration. Tax issues are complex and multifaceted. Ask your AI engine of choice and this is the response you’ll receive to the question – “What are the top income tax issues in the US today?”.   Here are some of the more popular responses: The Fairness Debate : One of the most prominent issues revolves around the perceived unfairness of the current system. Critics argue that the tax code favors the wealthy, with lower effective rates for high-income earners due to loopholes and deductions. This disparity raises concerns about the system's ability to ensure equitable contributions from all citizens. Specifically, the treatment of capital gains and dividends h...

  AI drawn picture.  As to taxes, they are evidently inseparable from Government. It is impossible without them to pay the debts of the nation, to protect it from foreign danger, or to secure individuals from lawless violence and rapine.             Alexander Hamilton   This is not a line in a song from the musical Hamilton . It’s an actual quote from Hamilton, the nation’s first Secretary of the Treasury and the architect of our governmental financial system. Although the creation of the IRS (1862 some 58 years after his death) was years away, Hamilton and other Founding Fathers long knew that the fledgling republic could not survive without some kind of taxation system in place to pay the costs of the Government. General Washington needed money to arm his soldiers. President Washington needed money to run the country. Currently in the news is the tax case of Moore vs. USA . The case deals with a couple resid...

  Tax practitioners are still waiting for the IRS to accelerate their notice letters and accompanying collection actions, after announcing earlier this year that the notices would resume their Covid hiatus, after tax season. So far, no acceleration.   The Texas Comptroller has filled that void, sending notices of sales tax audits to many more taxpayers. I base this on the number of calls my office has received from taxpayers who have received notices of a sales tax audit.   So, let’s take a moment to review a few things to keep in mind when dealing with the Texas Comptroller, just in case you receive that audit letter. 1. The Comptroller staff are professional, efficient, well-managed, very knowledgeable, etc., etc. You get the picture – you’re dealing with a well-run machine and one that knows their subject matter like the back of their hand. Taxpayers must be prepared when dealing with them. 2.     2. W hile payment plans are available, they will n...

  What to Expect During Your IRS Appointment: A Step-by-Step Guide Dealing with the Internal Revenue Service (IRS) can be an intimidating experience for many people, especially if it's your first time. Whether you're facing an audit or simply need to resolve a tax issue, it's natural to feel nervous and unsure about what to expect. Fortunately, with a bit of preparation and a clear understanding of the process, you can approach your IRS appointment with confidence. In this step-by-step guide, we'll walk you through what to expect during your IRS appointment, from the initial scheduling to the final resolution of your tax issue. We'll cover everything from what documents to bring with you to how to handle difficult questions from the IRS agent. So if you're feeling anxious about your upcoming IRS appointment, take a deep breath and read on – we've got you covered. Types of IRS appointments The IRS offers different types of appointments depending on the ...

  How to Expedite Your IRS Amended Return and Get Your Refund Faster Have you recently discovered an error on your tax return that could potentially affect your refund? Filing an amended return with the IRS can seem like a daunting task, but fear not! With a few simple tips and tricks, you can expedite the process and receive your refund faster than you may have thought possible. In this article, we will guide you through the steps to take to ensure your amended return is processed quickly and efficiently. From gathering the necessary documentation to understanding the IRS processing times, we have you covered. Don't let the thought of filing an amended return stress you out any longer - read on to learn how to expedite the process and get your refund in your hands as soon as possible. Reasons for Amending Your Tax Return There are several reasons you might need to amend your tax return. Here are a few common ones: - You received a corrected W-2 or 1099 after you filed your...

 I filed my return, so where's my refund? The IRS has a great tool to find out the status of your return and your refund. This is their website with the tool.  You will need the following information: Tax Year. SSN Filing Status Refund Amount as shown on your return. This is also a great opportunity for you to set up your ID.Me account . There are many benefits to establishing this account - one of which is access to your IRS records. Many other governmental agencies are using this as a starting point to access their online services as well.  I suggest taking the time to set up this account now. It does take some time and can be slightly frustrating, but you'll be glad you got it done so that you can access many other governmental portals.  Still have questions? Drop me a line at this link and I will be happy to get back you.  Good Luck!