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

  This is the first in a series of posts I’ll have on an IRS Offer in Compromise. Through this series I expect answer all of your basic questions, and a few out of the box specific question. If you have a specific question, you would like addressed, please drop me a line or post a comment.   With that introduction lets get started learning about Offers in Compromise and increasing your chance of qualifying for an OIC.   An Offer in Compromise (OIC) is a tax resolution option offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. The purpose of an OIC is to provide a way for taxpayers who are struggling financially to resolve their tax debt in a manner that is fair to both the taxpayer and the government. The IRS will consider an OIC when it is unlikely that the tax debt can be paid in full and the taxpayer's assets and income are not sufficient to fully pay the debt. An OIC can also be considered when the taxpayer has a ...

  Yes, the headline asks two very different questions. I will weigh in on this new and developing topic in today’s blog post. My post was prompted by the numerous articles setting forth five, or 10, things a gig worker should do at tax time, and pulling at that string just a bit. The IRS’ recent announcement regarding the delay of the 1099-k rules for third-party payors such as Venmo also pushed me in that direction.   This is something that’s been brewing since the advent of smart phones and apps/platforms that allow for gig workers to find work. For your consideration: “That Seems About Right,” Says Soon-To-Be-Audited Man CAMDEN, MN—While filling out a 1040 form and other documents Tuesday in preparation for filing his 2012 federal tax returns, local man Robert Moran, a blog writer who will shortly be audited by the Internal Revenue Service, announced that his calculations seem to all add up fine. “Well, I’m self-employed and work mostly from the kitchen, which ta...

  I’ve spent some time researching Offers in Compromise lately, especially the provision providing for an OIC under the “ Doubt as to Collectability with Special Circumstances” (DATC-SC) provision. As I’ve researched OICs in general and the DATC exceptions specifically, I’ve began to see some parallels with baseball. Stay with me for second. First, and on a purely unscientific basis, my bet is that many tax pros are also baseball fans. Further, I sense a close affiliation with the new baseball metrics and the willingness to wade into the tax code on   regular basis. For those non-baseball fans, the Michael Lewis book and the movie Moneyball demonstrates the value of a baseball grinder versus that of high money free agent that a team will overpay for years and years.   Its about looking at the numbers and not what your eyes tell you. Quoting the Billy Beane, the subject of the book and movie, “We are card counters at the blackjack table, and we’re going to turn the odds...

An IRS Offer in Compromise is a great tool available to some taxpayers, allowing them to pay the IRS back less than the full amount they owe. Sounds great.   You heard the commercials on the radio and on TV - XXX National Tax Relief Firm can reduce your taxes! Call now and take advantage of the IRS Fresh Star Initiative! (Author's note here - I probable hear more commercials for IRS tax relief on my satellite radio since I specialize in IRS Offers in Compromise and Audit Representation and many of my internet searches is on these tax related topics. I now fully appreciate the phrase "app would like to share your information to make your experience more enjoyable").   The Fresh Start Initiative is approaching middle age and the IRS financial standards are just not keeping up with our current national financial situation, or even that here in the Austin/Round Rock area where rents are up, and home prices are falling.   By way of background, please visit my deepe...

  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 ...

  1099-k Reporting Requirements for Venmo Transactions and Other Mobile Apps You may have heard or read about the IRS' recent proclamation about reporting receipts from Venmo transactions  and other mobile payment apps.  The IRS recently announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of more then $600. For the calendar year 2022, third party settlement organization who issue Forms 1099-k are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions.  So, while the reporting requirement may have been delayed, those of us who use Venmo as a payment mechanism need to continue to monitor this situation and implement compliant procedures for calendar year 2023.  The IRS using matching programs to match-up amounts contained in tax returns with actual amounts reported by third parties. A matching error notice is usually not that a big a deal, its a matter...

  Receiving these kinds of letters? Never pleasant. Ignoring it won't help the situation - you know that. We're often afraid of the unknown and the IRS is at the top of that list.  Second is the worry of what it will cost me to fix this problem? During the Holidays no less!  When it comes to the IRS, inaction digs a deeper and deeper hole. So let's talk about your situation. Take advantage of our free informational calls. By asking a few basic questions I can start you on your tax resolution journey and to peace of mind. Call me or drop me a line - our initial conversation is free. Lets see how I can help you through this issue.