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Taxes

Tips For Calling The IRS

calling about tax fines and penalties

One of the fun things about being self employed is the taxes. I say that in the most sarcastic way because anyone who has ever had the opportunity to be their own boss understands how confusing and difficult IRS rules truly are. When you add multiple streams of income or money from things like rental property or dividends, it gets even more exciting. I wasn’t really surprised when we got several notices after filing our taxes. It seems no matter how careful we are with keeping track of our business income and expenses, and even with hiring a CPA, the IRS always finds something wrong with our tax return. This year, one of our three notices was for a late corporate filing with a fine of $195! I knew I had the proper documentation to prove otherwise, so it was time to make the call. Speaking to the federal government is not for the faint of heart, so here are my tips for calling the IRS. Have All The Proper Documentation The reason I was so confident about calling the IRS was because I had a copy of the from we sent in to request an extension to file our ...

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How To Avoid Paying Taxes

lower your income taxes

This is a post from Gary Dek at Gajizmo.com. Enjoy! Benjamin Franklin said “The only two certainties in life are death and taxes” but with loopholes in the tax code, a little research and planning with your CPA or tax attorney may significantly reduce or altogether eliminate your tax liability. The mega rich know all the ways to avoid income and capital gains taxes, but those with lower incomes can find ways to cut their tax bills, too. Here are a few strategies to teach you how to avoid paying taxes. Not all our tips may apply to you so pick the ones that are feasible and discuss them with your accountant for the coming tax year. Tax Credits Would you like the government to pay part or all of your tax liability? It can happen if you accumulate enough tax credits. You may qualify for an Earned Income Tax Credit if you have a low to moderate income – $37,870 to $51,567 (depending on the number of dependent children in your household­­). At these income levels, your refundable tax credit may be larger than the amount of federal taxes you owe, resulting in a sizeable refund. Other tax credits ...

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Friday Rant: Taxes Suck

rant about paying taxes

I confess that I was really nervous about our taxes this year. I think I’m pretty smart. I went to school for a long time and have lots of diplomas and certificates hanging on my wall, but I honestly never have a clue about our taxes. Added to that is another of my irrational fears (along with birds and foods that turn from liquids to solids at room temperature) of being the subject of an IRS audit. I’m not being lazy about learning to use do it yourself software like Turbo Tax. Our taxes are really hard! We have income and expenses from all sorts of things, especially this year. Normal W2 income 1099 income Stocks and dividends Business income and expenses for an 8 employee business that also gets extra credits for certain health care and ADA laws Commercial and residential rentals Selling a satellite office as an asset sale and then my main practice as a stock sale Non 1099 or W2 income from online ventures Selling our flip house Taxes suck. I’d rather eat gravy in a bird cage than read IRS regulations. It would take me 5,000 hours to try and understand it all, so that’s ...

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What if I Can’t Pay My Income Taxes?

We are just over a month away from April 15th, when income taxes are due in the US. I have perhaps an unfounded fear of the Internal Revenue Service. I’ve never actually met anyone who worked there, and I have no reason to believe they are bad people, but they did get Al Capone. There has to be some merit to my fears. While thankfully I’ve never had to deal with this reality, I’ve often wondered, what happens if you can’t pay your income taxes? I think my fear started the first year I owned a business. Before that, I got paychecks. Taxes were withheld. I filed returns, and usually got a tax refund. Buying a business flipped that all upside down. I did know that I needed to pay quarterly returns, but with everything else going on, I didn’t. The business also made a profit, which is wonderful, but it caused me to owe $20,000 in taxes that first year. After some careful repurposing of funds, we were able to pay the bill. That has been several years ago, but I still experience a weird state of mind during tax season. I always have a bit of panic until ...

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