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

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 2017 tax overhaul presented a new set of challenges and questions for taxpayers to deal with in preparing their returns and making financial plans.   Tara Siegel and Ron Lieber of The New York Times wrote a great article on some of the more difficult questions facing taxpayers as a result of that legislation. You can read the article here . I want to add my input to some of the points they raise in a series of blog entries, in no order. The first issue I want to address is that of Qualified Business Income (QBI). It applies to so many taxpayers and in my opinion is the most confusing section of the new tax law. Reviewing the IRS website addressing QBI, you can tell that this area provides fertile ground for future #IRSAudits and adjustments. The key provision from my viewpoint is what is not QBI: A qualified trade or business is any section 162 trade or business, with three exceptions (Specified Service Trades or Businesses or SSTB): 1.       A trade or busines

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.

Just a reminder to be aware of phone scammers posing as IRS agents in the hopes of stealing your money or accessing your personal information. Scammers love to prey on the elderly, so please take extra precautions for those members of your family that are elderly. Keep in mind that any demographic with a land line and that may have contributed or subscribed to a group in the past is more likely to land on a phone list used by scammers. The elderly are more likely to have donated to political or charitable campaign, or receive frequent callers from insurance, medical or other solicitors. Sometimes its easy to get confused. Here are several things the IRS will never do: · Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. · Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested

So many investors and entrepreneurs like to use the Limited Liability Company (LLC) format for entity planning.  I refer to LLCs as a Swiss Army Knife because it is so flexible and adaptable to so many situations. Corporations are still a viable and proper choice for many, especially with the flexibility provided by Sub S elections. The Series LLC now deserves special consideration as way to reduce entity costs, both initially and over the long run. Here's why.  What is a Series LLC? Its an LLC that allows you to form multiple series entities via one entity; protect the equity of one series entity against the liabilities of another series entity; and have a different set of owners for each series entity. This is a Swiss Army knife on steroids! Let’s review the most common reasoning behind choosing such a structure. We’ll assume an individual real estate investor, married with 2 children, living in Texas. He owns 3 properties. Property 1 is a small 6-unit apartment comp

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