If you have an IRS problem and feel overwhelmed, you need to know that you are not alone. The Federal Tax Code is so complicated that it’s difficult for anyone to understand it completely.
Before you speak to anyone from the IRS, you should consult with a firm that is experienced in dealing with the IRS. We can be reached at 954-591-8290 or via our Contact form.
If you decide to do it yourself, we offer this advice:
First, never voluntarily tell the IRS anything unless they have specifically asked you for the information. This is extremely important for you to understand. You must only give the IRS the information that they have asked for and nothing else. The IRS actually counts on taxpayers to voluntarily give up too much information.
Second, never tell the IRS something that you know is not true. Lying the IRS is a criminal offense. If the IRS catches you in a lie, you may be charged with perjury, which can ultimately subject you to time in prison.
Third, you should never answer any question that you don’t understand completely. Remember what I said about the complexity of the tax code? You should not admit to or speak about anything that you do not understand. If you are not completely sure about your answer to a question, you should let them know that you "don’t know" or "can’t recall, and you want the opportunity to research the answer to the question. You have the right to stop the questioning at anytime. Tell the IRS agent you want to end the questioning and you want to engage someone to represent you.
IRS problems are serious business and they deserve serious attention. Procrastination will not resolve your IRS problem. There are numerous ways to resolve your IRS problem and move forward with a stress-free life. Contact us at 954.591.8290 to learn we may be of assistance.
This year, companies that process credit and debit cards as well as third-party network payments such as PayPal, Amazon.com and Google are required to report to merchants and to the IRS the gross amount of the transactions they've processed. If the small business exception, which is fewer than 200 transactions totaling less than $20,000, does not apply to you and you receive Forms 1099-K, be sure to handle them properly on your tax return.
Continue reading at 1099K Impact on your tax return.
If you have any questions about the tax law changes, business tips, or how to become a client, please call us at 954-591-8290 or use our Contact form.
Chances are your bank or broker will notify you of any required minimum distributions from your IRA, etc., but that doesn't mean you shouldn't check on your own. There's a substantial penalty for failing to do so--50% of what you should have taken. Check before the end of the year.
If you have any questions about the tax law changes, business tips, or how to become a client, please call us at 954-591-8290 or use our Contact form.
Chances are your business owns a number of vehicles, computers, printers, and assorted other equipment if you perform services. You should have some way of tracking the assets and their associated maintenance and repair costs on a unit-by-unit basis. It's unlikely you or someone else in the business will be able to track them mentally. Increasing repair costs can be a strong indication equipment is coming to the end of its useful life, or you've just got a lemon that will continue to suck cash. You can start with a spreadsheet listing the purchase date, identifying the equipment, and then listing the repairs or maintenance costs, along with a brief description of work performed. It'll give you a better idea of which units or models are racking up the costs.
A contribution of your time isn't deductible, but if you incur out-of-pocket expenses in connection with a contribution of your services, you may be entitled to a deduction. Car and truck expenses are the most common example, but you might also have to buy a uniform, pay for a hotel room for an overnight stay, etc. The cost of transportation and stay at a convention you're required to attend would be another example. If you make a single contribution of more than $250 in unreimbursed expenses in order to perform donated services for an organization, then you must obtain a written acknowledgment from the organization containing:
- a description of the services you provided
- a statement of whether or not the organization provided goods or services in return for the contribution
- a description and good faith estimate of the value of goods or services, if any, that the organization provided in return for the contribution
- a statement that goods or services, if any, that an organization provided in return for the contribution consisted entirely of intangible religious benefits (if that was the case).
In addition, you must maintain adequate records of the unreimbursed expenses.
If you have any questions please contact us 954-591-8290 or use our Contact form.