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

  Current Hot Topics in US Tax Law One current hot topic in US tax law is the treatment of cryptocurrency transactions. As the use of cryptocurrencies has become more widespread, the IRS has issued guidance on how these transactions should be taxed. In general, the IRS treats cryptocurrency as property for tax purposes, and transactions involving cryptocurrency are subject to capital gains tax. However, the tax treatment of cryptocurrency can be complex, and the IRS is continuing to issue guidance on this topic.   Another current hot topic in US tax law is the treatment of digital services and the taxation of e-commerce. As more and more businesses are conducting sales online, there is ongoing debate about how these sales should be taxed and whether there should be changes to the current sales tax system to better reflect the digital economy.   Other current hot topics in US tax law include the taxation of international transactions, tax reform, and the treatment of various ded

President Trump signed the massive coronavirus relief bill last week. Money will be distributed to the public by the IRS. So will the IRS offset what I owe against the check? What about my spouse? Here are some specific takeaways that you need to know now, and take appropriate action: 1. The government is using the IRS to distribute the checks only. They will not offset any IRS debts against the checks as this is not an IRS matter. The government is just using their infrastructure. 2. However, the only exception to this rule is child support obligations. If you owe back child support, it will come out of the check. This is the only exception at this time. 3. The only way the IRS will know about you is if you have filed a return in 2018 or for 2019. If you have not filed for 2018, and have not filed 2019, you will not receive a check.  In order to receive a check you must file a return for either of those years.  We love working with taxpayers who are delinquent filers. T

From the impact of #COVID19 on our daily lives, keeping up with an IRS refund is a must.  The IRS maintains a Where's my Refund Tool that allows taxpayers to track and verify that its headed to the intended destination.  Taxpayers will need three things to use the tool: Their Social Security number Their tax filing status The exact amount of the refund claimed on their tax return Once the taxpayer enters that information the tool will display the progress of their tax return through the following stages: Return received Return approved Refund sent Great information to keep handy as your go through the return process.  #IRS #IRSRefund

Here are some additional tips on Series LLCs that you may want to consider. 1. I copied the exact language of the statute in my formation document: XYZ, LLC is a Series LLC within the meaning of Subchapter M, Sections 101.61 et seq, Texas Business Organizations Code. Refer to the attatched addendum, which is incorporated herein by reference as if set forth in full, for detail notice of the series and the separate rights, powers, or duties with respect to specified property or obligations of the limited liability company or profits and losses associated with specified property or obligations. The attached addendum also includes the names of the series. The debts, liabilities and obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series, whether now existing or hereafter established, shall be enforceable against the assets of that series only, and not against the assets of XYZ, LLC generally or any other series thereof, and n

During his press conference last Wednesday, President Trump announced that he was authorizing the #IRS to defer tax payments without interest or penalties. "Using emergency authority, I will be instructing the Treasury Department to defer tax payments, without interest or penalties, for certain individuals and businesses negatively impacted,” he said during a prime-time address. “This action will provide more than $200 billion of additional liquidity to the economy. Finally, I am calling on Congress to provide Americans with immediate payroll tax relief. Hopefully they will consider this very strongly.” The tax deadline falls on the traditional April 15 due date, and although the Treasury and the IRS have not yet issued a formal announcement, they have deferred the date in the past, as when the IRS computer servers couldn’t handle a surge of last-minute tax filings. This is a fluid situation, so check back with us periodically for new details. 

The #IRS will extend the April 15 filing deadline in response to the  #COVID-19 emergency. There is no word from the #IRS at the time, but it is expected that the new date will fall on June 15 or thereabouts. Please contact #Austin-Tax-help for further details.

In this gig economy, many of us receive 1099s documenting the amount of income earned from that gig. The #IRS uses 1099s as a tracking mechanism. Just as an employer documents wages earned by an employee via a w-2, the #IRS uses 1099s to insure that individuals and companies reported all income earned. Its a compliance tool.  So what to do if the 1099 contains an incorrect amount? A bit of background first. The #IRS compares what income and expenses items that are subject to reporting requirements  against what you report on your tax return. Any difference results in a friendly letter from the #IRS with a bill. Occasionally omission results in an #IRSAudit.  Knowing this, your first attempt should be to contact the payer and attempt to get a substitute 1099. Keep a record of your request, and keep a record of how you calculated the correct amount.  Be sure to ask them to file the correction with #IRS.  If the payer fails to correct the amount you'll have some work to d

I'm now addicted to watching BigBrother #BB16, something I never considered watching until I was at my daughter's house. As I watch the "social game" play out, I thought it would be fun to use the players as examples of the type of people and responses we receive from the #IRS. Here are a couple, just for fun -  Devin - heavy handed and insulting; your worst nightmare; you'll do anything to get your file off his desk. Zack - loud, crazy and not much substance; you'll put up with an hour of ranting to get to one minute of rational thought. Nicole - sweet as pie; she'll bend over backwards to help you out, even though you may not like the result. Cayleb - "beast mode tax man"; my way or the highway, unless you're female. Donnie - dumb as a fox; you better watch yourself with Donnie - I think he has a masters in tax law and is former Navy Seal. Derrick - the perfect combination of smarts and empathy.  All in good fun. I wonder wha

The dog days of summer are a great time to spend a few minutes with your 2014 tax projections to see how the year is stacking up. Are you making as much income as you anticiapted? Are there any unexpected income or expense items? Are you having enough withheld or paid in as estimated tax? All great questions to be asking yourself now, rather than next April, when it's too late for action. Keep your notes - it makes a last minute look in December all the easier. While you're reviewing your situation, now is a great time to consider a charitable deduction to the 501(c)(3) charity of your choice. With school just around the corner, so many organizations are gearing up to help those in need as we move into a new school year. Their need for funding extends way beyond the end of the year. Our office supports these charities, as we're pleased to highlight them now for the great work they perform in the community.  In San Antonio we support Seton Home . They are a resi

Here are a couple of things not to do when confronted with an IRS issue: 1. Ignore all those certified letters . Certified letters are the IRS' way of slapping you in the face to get your attention. Continue to ignore those letters and you're sure to anger the IRS. If your looking for a levy or garnishment, then you're headed in the right direction.  2. My accountant/lawyer/spouse/ etc  is responsible for filing my returns . Responsibility for filing returns rests squarely on you - not your spouse, not you accountant, not your lawyer or anyone else. Blame has no role in solving your tax issue.  3. The IRS owes me money, so I won't file . Great strategy, until you realize that the limitations period will run and you will lose that refund. And you know the movie script here - you have several years of taxes due that could be wiped out by a refund you did not claim 6 years ago. Just like any 70's disaster movie you lose. You lose the refund and you owe th

In a truly Alice in Wonderland moment, the Unites States #TaxCourt issued an order in which the Court says that #IRS guidance "is not binding precedent and that taxpayers rely on same at their own peril." What? Okay, maybe the #TaxCourt meant that you can't rely on something a clerk tells you on the phone or at your local #IRS office. Maybe the #IRS representative was not authorized to issue the guidance, or perhaps they misconstrued the #TaxCode - you might understand how that could happen.  Not the case. The #TaxCourt Order in  Bobrow, Docket No. 7022-11 , dated ironically enough April 15, 2014, warns taxpayers that they can't rely on #IRS guidance. Looking deeper into the case, the advice was actually contained in an IRS publication, Number 590 to be precise. The #TaxCourt stated that reliance on Publication 590 "would not have served as substantial authority for the position taken on their tax returns." The American College of Tax Counse

The #IRS recently announced two scams that will impact taxpayers and the manner in which they deal with the #IRS. The newest approach involves scammers phoning taxpayers using fake names and IRS badge numbers - brazen acts to further intimidate unsuspecting taxpayers into providing the scammers with sensitive financial data. This method is effective because the #IRS will contact you by phone and the agent will identify himself with name and badge number. Further complicating the situation is that the scammer will threaten the taxpayer with severe consequences if the tax bill is not paid. The scammer may also have stolen an #IRS notice from the taxpayers mailbox, providing the scammer with an amount, a notice number and date, and other valuable information about the taxpayer's actual tax problem. The scammer will make threats, may use rude tones and language, and demand action now. Unfortunately, some agents may use these same tactics, especially when attempting to collect lar

Just when all is lost, the #IRSAppeals section comes to the rescue - sort of. #IRSAppeals is a great tool to use, at the right time and under the right circumstance. It can provide taxpayers with a break to get their house in order and make a good faith attempt to pay off the tax debt, usually via an installment plan. Its not quick fix pill. It takes work to muster the documents needed to support the taxpayer's position and to give the appeals officer the foundation to make the decision you want them to make. I like because is changes the playing field, getting it off one person's desk (collections) and onto another person's desk (appeals). Maybe its a card your don't have to play, or maybe its one you save for an other day. That is where experience plays a big role. As one collection officer told me recently, there are appeals opportunities all through the process. He was right, but the taxpayer has to get involved early to take advantage of those opportunities