TransTax Associates

TransTax Associates We provide tax compliance, IRS tax representation, Retirement and Investment management services for

08/10/2022

The Internal Revenue Service has released a draft version of the Form 1040 for next tax season, with an expanded question about virtual currencies, now referred to as digital assets, along with other changes on drafts of that form and related forms and schedules.

Last tax season, the question was: "At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?" The draft form for tax year 2022 says, "At any time during 2022, did you: (a) receive (as a reward, award, or compensation); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)" Presumably, this is to encompass other forms of digital assets besides cryptocurrency, such as nonfungible assets, or NFTs, many of which rose rapidly in value last year before seeing sharp declines. Presumably there will be more detailed instructions forthcoming from the IRS.

Contact Transtax at 682-323-5830 if you need tax, tax planning or investment assistance.

08/10/2022

Did you Know:

Federal audit rates for the wealthy dropped over most of the past decade, but that is now changing as the IRS, buttressed by a Biden administration that has made tax enforcement a priority, has pledged to increased scrutiny of high-net-worth taxpayers.

According to an article by Jeff Stimpson in Financial Advisor Magazine, For all individual taxpayers, the average audit rate fell from 0.9% in 2010 to 0.25% in 2019, or by 72%, the Government Accountability Office said in a recent report. Taxpayers with incomes of $5 million or more were the most likely to be audited throughout the decade though still saw their audit rates drop 86%.

But in a recent report, the IRS said audit rates for incomes between $100,000 and $500,000 have risen to 0.6% this year, doubling from 2019. The agency said audits for taxpayers making more than $10 million annually quadrupled to 8%. And audit rates for the $1 million to $5 million category more than doubled to 1.3%.

Contact Transtax at 682-323-5830, if you need assistance with an Tax audit.

08/08/2022

Did you know:

Benjamin Graham, the value investor once said, "The essence of investment management is the management of risk , not the management of returns,"

We provide tax compliance, IRS tax representation, Retirement and Investment management services for Professionals and Small businesses owners.

If you need help with your IRA or 401k, give Transtax a call at 682-323-5830.

08/08/2022

Did you know;
You can't wait around if you have a need to file an amended return.

The amount of time the taxpayer has to file an amended return for a refund of overpayment of income tax or to correct an error is 3 years from the time the return was due to be filed. A taxpayer can extend the time by making periodic payments on any tax due.

In the case where the taxpayer made periodic payments, the taxpayer is entitled to a refund of the taxes paid in the 2 year period prior to the amended return being filed.

Transtax is open all year. Call 682-323-5830, if you need to file an amended return.

08/06/2022

Did you know:

A more complex area where a you should file an amended return involves an overpayment of tax.

The Supreme court ruled in Jones v Liberty Glass Co. that an overpayment exists when the amount of tax paid is in excess of the amount properly due the government. The court noted that an overpayment can result from an error (by either the taxpayer or the Internal Revenue Service) in math, judgment, or interpretation of the facts or law. Unfortunately, for taxpayers, tax overpayments often occur.

Those overpayments based on fact or law in some cases is not known to you and may not be corrected by IRS.

Contact Transtax at 682-323-5830, if you are concerned about an overpayment of tax.

08/05/2022

Did you know:

You need to file an amended return if you reported a higher amount of income than you actually received.

The majority of the over reporting cases result in levy notices being issued by the IRS. Some over reporting claims may require a taxpayer be audited before a refund or adjustment is made.

One of my recent over reporting of income cases went to appeal before the refund was issued to the taxpayer even though IRS records indicated that the client had over reported income.

I you over reported your income contact Transtax at 682-323-5830.

08/03/2022

Did you know:
If you made a mistake on your tax return, you can file an Amendment.

The Internal Revenue Service (IRS) will correct any math errors you make on a tax return. Other errors may require that you file an amended tax return. According to the IRS, taxpayers who need to make a change or adjustment to a return they have already filed can do so by filing an amended tax return

08/03/2022

Did you know:

The IRS maintains the information returns matching program. This program is designed to detect unreported income and excessive deductions by matching returns filed by taxpayers to W-2’s and 1099’s they received from payers. If a discrepancy exists between what the taxpayer reported as income and IRS records, a computer generated CP-2000 Notice is sent to the taxpayer.

The CP-2000 explains any adjustments the IRS plans to make to the taxpayers return and gives the taxpayer 30 days to respond. A taxpayer receiving a CP-2000 Notice should always respond even if the IRS is correct. In cases where the taxpayer disagrees with the IRS a detailed explanation including an amended tax return may be the best response.

If you need help contact Transtax at 682-323-5830

07/31/2022

Did you know. Before calling the IRS, you need;
Social Security numbers and birth dates for those who were included on the tax return;
An Individual Taxpayer Identification Number letter if the taxpayer has an ITIN instead of an SSN; The filing status: single, head of household, married filing jointly, married filing separate, or qualifying widow or widower with a dependent child; The prior-year tax return.; A copy of the tax return in question and if applicable, any IRS letters or notices received by the taxpayer.

Phone representatives may need to verify taxpayer identity with information from the return before answering certain questions.

The IRS representative only discuss personal information with the taxpayer or someone the taxpayer authorizes to speak on their behalf.

If you need help in resolving an IRS issue Call Transtax at 682-323-5830.

07/29/2022

Did you know, payroll taxes account for 70% of all taxes collected by the IRS.

IRS is making Payroll Tax enforcement a priority. When employment taxes are not paid, the IRS investigates to determine which owners or key employees are responsible for the employer’s failure to comply and looks to collect from those individuals determined to be responsible parties.

If money intended for payroll taxes is traced to personal use, the IRS reviews 1040 tax return forms to determine if the funds have been reported as income. “If not, the result could be both employment tax and income tax issues.

Call 682-323-5830 if you have a potential issue.

07/28/2022

Did you Know?

Long-standing IRS regulations disallow deductions for travel and entertainment expenses that are “lavish” or “extravagant.” But what’s extravagant for one taxpayer might be an ordinary and necessary expense for another, according to a 1977 decision by the Tax Court.

Call Transtax at 682-323-5830, if you have a concern.

07/27/2022

We provide tax compliance, IRS tax representation, Retirement and Investment management services for Professionals and Small businesses owners.

Call 682-323-5830 for more information.

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2201 N. Collins, Ste. 148 Arlington, Tx 76011
Collins, TX
76011

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