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

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...

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...

You hopefully read our recent post on the Taxpayer's Bill Rights. Well, the flip side to that coin is the power of the IRS to regulate how taxpayers must report item, or comply with the law. Congress has given the IRS wide latitude in deciding how to enforce reporting and compliance of various items. Like an ambivalent parent, sometimes the IRS says "you (the taxpayers) must report (fill in the blank) in this manner." Just like a parent with a young child, sometimes the requirement is "I mean it", other times its "I really mean it.", and others "I triple mean now!!!".  The lesson here goes back to something we preach over and over - the key to success in an audit is preparation and then more preparation. Don't get into a situation where you are rushed into an audit. Review the document request, speak with the auditor, review the client files. Candidly speak with the auditor about your plans. Consider amending a return if needed b...

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...

Lots of news this week about the #IRS' lean resources and what that means to customer service. Yes wait times are high - higher than most any other customer service business. Yes, their computer systems are antiquated leaving each representative to re-verify the same information over and over again. This wastes at least 25% of each phone call, if not more.  I do wish there was one way to verify your power of attorney for a client. I do wish their computer systems were faster. I do wish I could call ahead for a virtual appointment. Maybe we'll get that in the future. But I have to praise the telephone work of the IRS representatives I speak to from across the country. I find them to be helpful, understanding, and cheerful. This does not mean our conversations are "love-fests", but you have to a willingness to cooperate on both sides to reach an agreement. As an advocate for my clients, this is essential to moving their case on to resolution so they can get on ...

This information is provided by The Law Office of Martin Cantu and SATaxHelp.com . Everyone can prepare and e-file their federal tax returns for free using the IRS Free File Program. Free File is offered through a public-private partnership between the Internal Revenue Service and tax software companies. Free File can help you do your taxes fast; it’s safe and it doesn’t cost anything. Free File offers two options: easy-to-use software or online fillable forms. Free File software is for taxpayers who earn $57,000 or less Here’s how it works: You must access Free File through the IRS website. At www.irs.gov/freefile , there’s an online tool which allows you to give a little information about yourself then guides you to the software for which you are eligible. Or, you can review a complete list of companies and their offerings and make a selection. Once you select a software product, you will be directed away from the IRS website and onto that company’s website...

Here is some information on how to determine your tax filing status. For more information or other tax related questions, place contact the Law Office of Martin Cantu or sataxhelp.com. Determining your filing status is one of the first steps to filing your federal income tax return. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax. Some people may qualify for more than one filing status. Here are eight facts about filing status you'll need to know so you can choose the best option for your situation. 1. Your marital status on the last day of the year determines your marital status for the entire year. 2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligatio...

The income tax filing season has begun and important tax documents should be arriving in your mailbox. Even though your return is not due until April, you can make tax time easier on yourself with an early start. Here are the Internal Revenue Service’s top 10 tips to ensure a smooth tax-filing process. For more questions contact the Law Office of Martin Cantu . 1. Gather your records. Round up any documents you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return. 2. Be on the lookout W-2s and 1099s will be coming soon; you’ll need these to file your tax return. 3. Have a question? Use the Interactive Tax Assistant available on the IRS website to find answers to your tax questions about credits, deductions, general filing questions and more. 4. Use Free File. Let Free File do the hard work for you with brand-name tax software or online fillable forms. It's available e...

The IRS announced a new “Fresh Start” program, designed to allow taxpayers to regroup financially, getting a new start on their finances. This program provides taxpayers an opportunity to limit the damage IRS tax collection activity may have had on their credit report and credit score, thus impairing their ability to obtain new credit, or credit at a fair market rate. Among the highlights of the program are the following: Tax Liens The IRS increased the dollar threshold for filing notice of tax lien. The new threshold amount is $10,000, up from $5,000. There is an exception in the case of a taxpayer bankruptcy or other similar action. Keep in mind that a Federal Tax lien is an IRS demand for payment from the taxpayer, within 10 days of the letter delivering a copy of the lien. This is a statutory process which the IRS must follow. A Notice of Federal Tax lien is a formal filing in the public records of the county of residence of the taxpayer and allows IRS to establish ...