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I try to add tax blog articles weekly on tax topics that may be interesting to you. Please browse. If there is a topic you would like to see here or would like to more information on, please contact me.

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My Tax Blog

October 13, 2021 | Collection, IRS, Tax Due, Taxes...
IRS Working with Private Debt Collection Agencies AGAIN!

Man & woman setting at desk with papwers. Man is covering face with hand head lowered. Woman is covering her mouth with her hand

If its been more than a year since you paid on or contacted the IRS for that annoying tax debt, the IRS may refer your account to a private debt collection agency. However, the IRS only works with a handful of agencies. Here’s how to know if that collection letter is legitimate: Collection letter comes … IRS Working with Private Debt Collection Agencies AGAIN!

August 31, 2021 | 2021 Tax Season, Collection, Form 1040, IRS, Refund...
I was Getting a Refund but Got an IRS Bill . . . ?

Been getting a lot of calls for IRS Notices. Most of them seem to be related to the Stimulus Payment or “Recovery Rebate Credit”. The Recovery Rebate is a reconcile. Taxpayers not receiving the full amount of stimulus payment one (Paid out March-May 2020) or Stimulus Payment two (paid out January thru March 2021), can … I was Getting a Refund but Got an IRS Bill . . . ?

October 7, 2020 | Collection, Form 1040, IRS, Tax Due, Tax Forms...
How to Handle a Tax Notice (“Bill”)

woman setting at computer desk holding her head

It’s Tax Notice season, IRS, State and Local Tax Districts are issuing those wonderful “love letters” for tax due . . . questions: 1.Is the Notice legitimate? 2.Is it Correct? 3.How to respond? Legitimacy: If the Tax Notice (“Bill”) has spelling or grammar errors, asks for payment in bit coin or cash cards or threatens … How to Handle a Tax Notice (“Bill”)

September 1, 2020 | Collection, IRS, Tax Resources, Taxes...
How Long Should I Keep Tax Return Copies?

Top half of IRS 1040x amended tax return form

Depends on tax situation: If don’t own a business, then keep AT LEAST four years of tax returns. The IRS has three years after the tax return is filed to review the filed return and send a bill. CAREFUL! IRS can review up to six tax years of tax returns if twenty five percent or … How Long Should I Keep Tax Return Copies?

July 30, 2020 | Collection, Form 1040, IRS, Tax Due, Tax Resources...
Can’t Pay Taxes? Options . . .

July 15 has come and went . . . and the tax bill does not fit into your budget. . . what to do: File anyway. This stops the Failure to File Penalty. If can pay the balance by year end, make monthly payments. Ask your tax pro for bill stubs. Pay at least every … Can’t Pay Taxes? Options . . .

July 22, 2020 | Collection, Form 1040, IRS, scams, Tax Due...
SCAM ALERT—Some of the IRS’s Favorites:

Accountant holding books bag of cash beside him. policeman beside him holding a pair of handcuffs

Pfishing: Fake emails made to look like coming from the IRS to steal personal information. IRS never contacts taxpayers by email. Don’t click on any “IRS” links Fake Charities—unsolicited contact from questionable charities. Have similar names to legitimate charities to fool people into giving money or financial information. Legitimate charities have an employer identification number … SCAM ALERT—Some of the IRS’s Favorites:

September 25, 2019 | Collection, Form 1040, Gift, IRS, Tax Due...
Prizes Are Taxable?

Tahoe utility setting at the water's edge of a beach

As a high school student discovered in the Conyers case. A car dealership held a competition for high school seniors who had perfect attendance and/or good grades. Schools submitted names of qualifying students and the dealership held a drawing for a new car. The student accepted the new vehicle, but didn’t report the income on … Prizes Are Taxable?

August 14, 2019 | 2021 Tax Season, 2022 tax year, Collection, Form 1040, IRS...
BitCoin/Virtual Currency Owners BEWARE IRS Has Its EYE on You . .

engraving part of face and eye from US currency

Virtual Currency may not be as private as previously thought. The IRS is reviewing Virtual Currency holders (e. g. Bitcoin and related currencies) tax returns because these taxpayers may not have reported income (or paid taxes) when the currency was redeemed (used to buy goods and services), traded or sold. The IRS is sending a … BitCoin/Virtual Currency Owners BEWARE IRS Has Its EYE on You . .

July 31, 2019 | Collection, Foreign taxation/Abroad, Form 1040, IRS, Tax Due...
IRS Collects Tax for Foreign Countries Too?

Two police officers outside one holding night stick other holding hand cuffs

Moving to the United States does not stop a foreign country from collecting a tax debt as Dr. Retfalvi found out (Retfalvi, 4thCircuit). Dr. Retfalvi was a Canadian citizen. He moved to the US under a Work Visa and later became a US Citizen. The IRS initiated collection procedures on Taxpayer on behalf of Canada. … IRS Collects Tax for Foreign Countries Too?

July 10, 2019 | Collection, Form 1040, Tax Forms, Tax Resources...
Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?

The short answer is No. The numbers are different. Federal and most State tax returns subtract for fringe benefits (e. g. 401K), adjustments (e. g. student loan interest) and/or a standard deduction before calculating total taxable income also known as Adjusted Gross Income or AGI. However, Cities usually base their taxable income on the Box … Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?

Welcome

My Tax Blog

October 13, 2021 | Collection, IRS, Tax Due, Taxes... IRS Working with Private Debt Collection Agencies AGAIN!

August 31, 2021 | 2021 Tax Season, Collection, Form 1040, IRS, Refund... I was Getting a Refund but Got an IRS Bill . . . ?

October 7, 2020 | Collection, Form 1040, IRS, Tax Due, Tax Forms... How to Handle a Tax Notice (“Bill”)

September 1, 2020 | Collection, IRS, Tax Resources, Taxes... How Long Should I Keep Tax Return Copies?

July 30, 2020 | Collection, Form 1040, IRS, Tax Due, Tax Resources... Can’t Pay Taxes? Options . . .

July 22, 2020 | Collection, Form 1040, IRS, scams, Tax Due... SCAM ALERT—Some of the IRS’s Favorites:

September 25, 2019 | Collection, Form 1040, Gift, IRS, Tax Due... Prizes Are Taxable?

August 14, 2019 | 2021 Tax Season, 2022 tax year, Collection, Form 1040, IRS... BitCoin/Virtual Currency Owners BEWARE IRS Has Its EYE on You . .

July 31, 2019 | Collection, Foreign taxation/Abroad, Form 1040, IRS, Tax Due... IRS Collects Tax for Foreign Countries Too?

July 10, 2019 | Collection, Form 1040, Tax Forms, Tax Resources... Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?

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