Scott Potter - The Tax Nerd

08/24/2022

The IRS announced today an unprecedented penalty relief program, but time is EXTREMELY limited to take advantage of this.

What does all of this actually mean? If you filed certain 2019 or 2020 tax returns or informational forms (international businesses, for example) late and were penalized, these penalties may be waived. No action is required if you have already paid these penalties, the IRS has indicated that they will refund the penalty amounts.

Have you NOT filed your 2019 or 2020 tax returns? If you do so by September 30, 2022 (just over one month away) you may not be charged late filing penalties.

Not all taxpayers will qualify and not all types of tax returns or forms are impacted. The Taxpayer Advocate has shared a number of important details on their blog.

Please reach out if you have any questions about this exciting development.

https://www.taxpayeradvocate.irs.gov/news/nta-blog-the-irs-is-automatically-providing-late-filing-penalty-relief-for-both-2019-and-2020-tax-returns/

08/18/2022

With the passing of the recent Inflation Reduction Act of 2022, there has been a media frenzy of horror stories regarding armed IRS agents flooding the streets, breaking down doors, using deadly force, or simply put, coming for YOU. But is any of this true? Should you be scared? Check out Kelly Phillips Erb's (taxgirl) recent story on this topic.

https://news.bloombergtax.com/tax-insights-and-commentary/irs-is-hiring-new-employees-not-raising-an-army

07/28/2022

Winding down a week of all kinds of nerdiness with an update from the IRS on future plans and current operations (hopefully some news about all those pesky backlogs and notices sent in error. I have learned a tremendous amount during this week, both in terms of important tax topics to share with you, as well as opportunity to continue to deliver (and improve upon) quality client service.

07/26/2022

How has your summer been? While it has been busy as usual, I am fortunate to have the opportunity to attend an educational conference by the National Association of Tax Professionals (NATP) in Las Vegas this week. The week is packed with networking opportunities and exciting courses on cryptocurrency, retirement planning and other fun topics which will be put to great use in serving my clients.

What tax topics are you currently curious about? I appreciate any input on topics that may be of interest to you for future posts!

06/30/2022

As if real estate hasn't already been on fire this past year, summer often brings a significant increase in home buying and selling activity.

Are you planning on selling your home? Have you already? What does this mean for your taxes?

Many people are under the mistaken believe that they must buy a new home to avoid paying tax. This hasn't been a requirement since the 1990s!

As long as you have lived in the home that you own (as a primary residence) for 2 of the 5 years preceding the sale, you may be able to exclude as much as $250,000 in gains from taxation ($500,000 for married couples filing jointly)! Additional conditions may apply and always keep in mind that every situation is different.

Want to discuss the tax impact of your home sale in more detail? Give the Nerd a shout!

06/21/2022

Você usa um ITIN na sua declaração de imposto de renda? É bom ter certeza de que o seu ITIN está válido, para evitar uma supresa no momento do envio da sua declaração de 2021.

O seu ITIN pode ter expirado se não foi usado para envio de pelo menos uma declaração nos últimos 3 anos (anos fiscais de 2018, 2019 ou 2020).

Caso esteja em dúvida, você pode verificar a situação do eu ITIN nesta linha direta com o IRS: 1-800-829-1040.

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Você não sabe o que é um ITIN, ou gostaria de saber mais sobre o assunto? Temos um artigo muito bacana na nossa página do Linkedin:

https://www.linkedin.com/pulse/o-milagroso-itin-tire-suas-d%25C3%25BAvidas-scott-potter-the-tax-nerd/?trackingId=VbIkx186sAqqb6QJcjhvzQ%3D%3D

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Precisa de ajuda pra obter o seu ITIN? Fale agora mesmo com o Tax Nerd!

06/15/2022

It seems that the IRS letter printers have been going into overdrive these past few weeks.

Did you pay your balance in full months ago, but are now receiving menacing "balance due" notices?

You are NOT alone! The IRS systems may take some to process and post payments, or the payment may simply be in limbo.

As a Certified Public Accountant, our tax nerd is able to help resolve your issues with the IRS.

If you have a problem, if no one else can help, and if you can find him....maybe you can hire The Tax Nerd.

06/10/2022

With summer fast approaching, your children may get that entrepreneurial bug and go into business hawking cool, refreshing lemonade.

And who wants their cut of the profits of these young enterprising self-employed individuals? The IRS, of course!

The IRS wants to remind us a few important points:

1) Everyone, including minors, must file a tax return if they had self-employment income over $400.

2) If they owe taxes, children should file their own tax return, even when claimed as a dependent by their parents.

3) Parents CANNOT claim their dependent's earned income on their own tax return.

4) As with any business with a profit motive, taxes may be lowered by deducting certain expense (such as those fresh lemons, sugar, and serving cups).

What better way to introduce your children to the grown-up responsibility of paying taxes, than helping them file their taxes for their small businesses?

06/09/2022

I would like to pass along an update fresh off the presses from the IRS. The IRS has published new deduction rates (effective July, 1, 2022) for mileage when personal vehicles are used in course of your business, including those of you that of drive for Uber, Lyft, or any of the various the delivery apps such as DoorDash or Postmates.

For miles logged from July 1, the new rate will be 62.5 cents per mile. All miles prior to this date will use the the previous rate of 58.5 cents per mile.

Given the different rates for different parts of year, keeping detailed records becomes even MORE critical.

As I have previously noted, I highly recommend to invest in a mileage tracking app, such as Stride, MileIQ, or DriversNote, and begin tracking ALL business miles driven EVERY DAY. You don't want to end up in that unfortunate position of getting audited by the IRS and having your deductions denied because you failed to keep decent records!

05/30/2022

"All gave some, some gave all."

Today we mark a solemn and one of the most important holidays in the United States. Why do we observe Memorial Day and what does it mean to our country?

https://www.usatoday.com/story/news/nation/2022/05/27/memorial-day-history-explained/9931640002/

Declared a national holiday through an act of Congress in 1971, the tradition of honoring fallen soldiers on Memorial Day dates back to the Civil War.

05/27/2022

Owe money to the IRS? You may soon be paying just a little bit more in interest. Effective July 1, 2022, the interest rate will be going up to 5% on outstanding tax debt.

Deve dinheiro ao IRS? Você pode em breve estar pagando um pouco mais de juros. A partir de 1º de julho de 2022, a taxa de juros aumentará para 5% sobre a dívida fiscal em aberto.

IR-2022-107, May 20, 2022 — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning July 1, 2022.

05/26/2022

The IRS has a great tool to help protect your identity, and to recognize if you have been a victim of identity theft: the Taxpayer Identity Theft Guide.

If you have been following the safety steps I have talked about the past days, you are working to reduce your risks. However, if ANY of these things happened to you, you should take immediate action:

- You get a letter from the IRS inquiring about a suspicious tax return that you did not file.

- You can’t e-file your tax return because a tax return has already been filed using your Social Security Number.

- You get a tax transcript in the mail that you did not request.

- You get an IRS notice that an online account has been created in your name.

- You get an IRS notice that your existing online account has been accessed or disabled when you took no action.

- You get an IRS notice that you owe additional tax or refund offset, or that you have had collection actions taken against you for a year you did not file a tax return.

- IRS records indicate you received wages or other income from an employer you didn’t work for.

- You’ve been assigned an Employer Identification Number but you did not request an EIN.

If you have experienced any of these situations, follow the steps provided on the IRS website:

https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft