EAKUB A. KHAN CPA P.C.

02/12/2021

Today's the day, everyone! Tax Season is officially open.

Because of the IRS' delayed opening, this year's filing window is shorter than normal. Time is of the essence.

As you know, your 2020 taxes aren't going to look like every other year's, so get your appointment scheduled with a qualified pro ASAP. (That's us.) 😊

02/11/2021

If you have an outstanding debt with the IRS, by law, the IRS must "consider" settling your debt.

We're talking here about the Offer in Compromise (OIC), and they are indeed authorized to settle for less than the full amount that you owe. In fact, they always have to listen to an offer.

But be careful -- not everyone qualifies for an offer in compromise. The IRS has very rigid guidelines for examining an offer in compromise. The IRS will look at your household income, living expenses and asset values, and determine if they can collect the FULL amount owed from you. In most cases, to accept a compromise, the IRS has to be convinced that they will never collect the full amount owed from you. If so, then they can agree to settle for a lower amount, representing what can be paid and recovered.

Usually, you need help for this process.

02/10/2021

The rise of self-employment and the side hustle is an exciting trend for the US economy. If this is you, there are important deductions you'll want to make use of to make your venture as profitable as possible.

If you file your taxes with us, we're always looking out for these money-savers. Let us know if you have questions.

Working for yourself comes with the opportunity to claim a variety of tax write-offs.

02/09/2021

In the realm of preparing your tax return, I urge you ... do NOT fall prey to the thinking that a software program or talking heads on a floating desk can suffice to enable you to preserve your resources or properly leverage the multiplicity of credits, loopholes and deductions available.

Give yourself the gift of financial peace of mind during tax season, and do it with someone who knows how to do it right.

02/08/2021

Lowered gas and insurance costs in 2020 led the IRS to reduce the mileage deduction rates for 2021. This is now what you can deduct for driving for business purposes this year:

- 56 cents/mile for business (down from 57.5)
- 16 cents/mile for medical or moving (down from 17)
- 14 cents/mile for charitable purposes

But with gas prices seemingly on the way up again in 2021, we'll probably see mileage rates affected accordingly next year.

02/05/2021

Depending on how you handle your 2020 taxes, you'll end up in one of two groups:

1) Sitting on top of a mountain of tax benefits that are available to those who use them effectively, or
2) Crying at the bottom of a pit of missed tax opportunities that could have eased the financial strain of 2020.

We're here to help YOU process tax season. No matter what happened during the donkey that was "2020" ... we're going to ensure that your taxes are as locked tight, cost-efficient and SAVINGS-OPTIMIZED for you as legally and ethically possible.

02/04/2021

Partnerships, LLCs and S-Corps:

Circle March 15th on your calendar again. This is your business return deadline.

02/03/2021

The IRS only has 10 years to collect your unpaid tax debt.

After 10 years expires, the IRS must, by law, put a credit on your account for the amount that cannot be collected, and move your account balance to zero. The time to collect begins when the IRS first puts a balance due on its books, and ends 10 years later. The end is known as the "IRS collection statute expiration date".

By law, owing the IRS is not forever.

And, of course, with our help, it's much, much less.

02/02/2021

This is going to be a busy year for us (and most tax professionals, honestly). Because of the stimulus payments, extra unemployment benefits, PPP and EIDL loans, payroll tax deferrals, and the many other short-term tax credits and options available, we're already seeing more traffic in our office than usual this time of year.

So it would be wise to get an early jump on things, get questions answered, and help us get your process started smoothly ... because appointments are not going to be as readily available the further we get into tax season.

Contact us to get started.

02/01/2021

Unemployment benefits are taxable in most states. (Check the article for the states that are exempt.)

If you don't get taxes withheld from your unemployment checks automatically or make estimated quarterly payments based on the benefits you received, the taxes will be due when you file your annual return. With all of the extra benefits available in 2020, that means you might be slapped with a tax bill that you didn't expect.

We have ways of helping you figure out those payments, if needed.

01/29/2021

The Families First virus-related Tax Credit has been extended through March 31, 2021. Many employers had been required to keep paying employees forced to miss work due to health restrictions (e.g. staying home with children while schools were closed), but offered a tax credit to help cover the cost.

Employers no longer must pay such workers. But the new bill extends the refundable tax credit through the first quarter for those bosses who are still doing so.

Overview of COVID-19-related paid sick and paid family leave tax credits.

01/28/2021

The plethora of new tax breaks and credits from the two big COVID relief bills are not automatically applied to your taxes. You have to know about them and apply the appropriate information and forms to your return manually.

Yet another reason to confer with a professional who can help you do that.