Barry C. Nelson, CPA

04/19/2023

If you live in an area affected by storms, severe weather, or other natural disasters and missed yesterday's deadline- fret not. The IRS has extended the deadline for several areas affected by disaster. You can find the whole list here. https://lnkd.in/dENHbiR

Find disaster tax relief information and resources.

03/30/2023

𝐔𝐧𝐟𝐢𝐥𝐞𝐝 𝐭𝐚𝐱 𝐫𝐞𝐭𝐮𝐫𝐧𝐬...𝟐𝟎𝟐𝟐 𝐚𝐧𝐝 𝐩𝐫𝐢𝐨𝐫 𝐲𝐞𝐚𝐫𝐬?

If you have neglected to file a tax return from a previous year or years you should do so immediately–even if you think you can’t pay. The penalties and interest you may face for not filing a return are often much worse than if you file but do not pay in full. In other words, you have nothing to gain by not filing tax returns.

We have the expertise you need to straighten out your misunderstanding with the IRS. Once we have filed your missing returns, we can help you work out an installment plan or an Offer in Compromise. Please note that the IRS will not accept any payment arrangement or revoke a lien or levy until all delinquent tax returns are filed.

𝐈𝐟 𝐲𝐨𝐮 𝐨𝐫 𝐬𝐨𝐦𝐞𝐨𝐧𝐞 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐢𝐬 𝐡𝐚𝐯𝐢𝐧𝐠 𝐈𝐑𝐒 𝐢𝐬𝐬𝐮𝐞𝐬, 𝐩𝐥𝐞𝐚𝐬𝐞 𝐜𝐨𝐧𝐭𝐚𝐜𝐭 𝐦𝐞 𝐚𝐭 (𝟔𝟎𝟗)𝟒𝟏𝟎-𝟗𝟏𝟓𝟒 𝐨𝐫 𝐛𝐲 𝐞𝐦𝐚𝐢𝐥 𝐚𝐭 𝐛𝐧𝐞𝐥𝐬𝐨𝐧𝐜𝐩𝐚@𝐠𝐦𝐚𝐢𝐥.𝐜𝐨𝐦

03/24/2023

𝐃𝐨 𝐘𝐨𝐮 𝐇𝐚𝐯𝐞 𝐔𝐧𝐟𝐢𝐥𝐞𝐝 𝐓𝐚𝐱 𝐑𝐞𝐭𝐮𝐫𝐧𝐬?

If you have neglected to file a tax return from a previous year or years you should do so immediately–even if you think you can’t pay. The penalties and interest you may face for not filing a return are often much worse than if you file but do not pay in full. In other words, you have nothing to gain by not filing tax returns. We have the expertise you need to straighten out your misunderstanding with the IRS. Once we have filed your missing returns, we can help you work out a payment plan or an Offer in Compromise. Please note that the IRS will not accept any payment arrangement or revoke a lien or levy until all delinquent tax returns are filed.

𝐈𝐟 𝐲𝐨𝐮 𝐨𝐫 𝐬𝐨𝐦𝐞𝐨𝐧𝐞 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐢𝐬 𝐡𝐚𝐯𝐢𝐧𝐠 𝐈𝐑𝐒 𝐢𝐬𝐬𝐮𝐞𝐬, 𝐩𝐥𝐞𝐚𝐬𝐞 𝐜𝐨𝐧𝐭𝐚𝐜𝐭 𝐦𝐞 𝐚𝐭 (𝟔𝟎𝟗)𝟒𝟏𝟎-𝟗𝟏𝟓𝟒 𝐨𝐫 𝐛𝐲 𝐞𝐦𝐚𝐢𝐥 𝐚𝐭 𝐛𝐧𝐞𝐥𝐬𝐨𝐧𝐜𝐩𝐚@𝐠𝐦𝐚𝐢𝐥.𝐜𝐨𝐦

03/22/2023

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚𝐧 𝐈𝐑𝐒 𝐎𝐟𝐟𝐞𝐫 𝐢𝐧 𝐂𝐨𝐦𝐩𝐫𝐨𝐦𝐢𝐬𝐞?

An offer in compromise allows you to settle your tax debt for less than the full amount you owe to the IRS. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship.

The IRS will generally approve an offer in compromise when the amount you offer represents the most they can expect to collect within a reasonable period of time. We explore all other payment options before we submit an offer in compromise on your behalf.

𝐈𝐟 𝐲𝐨𝐮 𝐨𝐫 𝐬𝐨𝐦𝐞𝐨𝐧𝐞 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐢𝐬 𝐡𝐚𝐯𝐢𝐧𝐠 𝐈𝐑𝐒 𝐢𝐬𝐬𝐮𝐞𝐬, 𝐩𝐥𝐞𝐚𝐬𝐞 𝐜𝐨𝐧𝐭𝐚𝐜𝐭 𝐦𝐞 𝐚𝐭 (𝟔𝟎𝟗)𝟒𝟏𝟎-𝟗𝟏𝟓𝟒 𝐨𝐫 𝐛𝐲 𝐞𝐦𝐚𝐢𝐥 𝐚𝐭 𝐛𝐧𝐞𝐥𝐬𝐨𝐧𝐜𝐩𝐚@𝐠𝐦𝐚𝐢𝐥.𝐜𝐨𝐦

03/15/2023

How much is the Child Tax Credit for 2023? Here's what you need to know about qualifying.

The maximum tax credit per qualifying child is $2,000 for children five and under – or $3,000 for children six through 17 years old.

03/14/2023

How Your IRA and 401(k) Are Affected by New Rule Changes
https://www.wsj.com/podcasts/your-money-matters/how-your-ira-and-401k-are-affected-by-new-rule-changes/62253c46-f311-428c-b02a-98a1d6e306a2?mod=Searchresults_pos6&page=3

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Congress recently passed a broad set of rule changes that affect Americans’ 401(k) and retirement accounts, to make it easier for people to sign up. WSJ personal finance reporter Ashlea Ebeling joins host J.R. Whalen with details.

03/13/2023

How long should you wait before filing taxes? Surprise! Later can sometimes be better

Everyone says file your taxes early, but accountants say there may be times it's better to wait. Here are some of those times.

10/11/2022

Do You Have to Pay Taxes on Your Social Security Benefits?

It used to be so simple: Social Security benefits were tax-free. Period. But then, as part of a "Save Social Security" plan back in the 1980’s, Congress decided to tax up to 50% of benefits. Later, lawmakers decided to tax up to 85%, with the extra revenue going to shore up Medicare.

So, who gets taxed and who doesn’t?

First the good news: About 70% of all beneficiaries are still safe from being taxed on their social security if that is their only income.

If you’re among the 20 million or so who aren’t so lucky, though, if your “provisional income” is more than $25,000 on a single return or $32,000 on a joint return. On your tax return, provisional income is adjusted gross income (not including Social Security) plus 50% of your benefits plus any tax-free interest from municipal bonds.

If that income is between $25,000 and $34,00 on a single return or between $32,000 and $44,000 on a joint return, up to 50% of your benefits can be taxed. The rest is tax-free.
Now, if your provisional income is more than $34,000 on a single return or $44,000 on a joint return, it’s likely that 85% of your benefits will be taxed. Note: the 50% and 85% is not the tax rate but the percentage of social security benefits that will be taxed at your individual tax rate.

Finally, don’t assume that your state taxes the same amount of benefits as Uncle Sam. In most states, Social Security is still completely tax-free including New Jersey where I am but these thirteen states will tax your social security: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia

08/10/2022

Balance-due notices on joint returns issued in error, IRS says
By Barry Nelson
Education & Training with Barry C. Nelson, CPA
August 03, 2022 08:14 AM
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The main focus of my practice is taxpayer representation involving IRS tax issues and compliance. Some taxpayers who filed tax returns for 2021 using the married-filing-jointly filing status may receive or have already received an IRS notice CP14 erroneously demanding a remaining tax balance owed or an incorrect amount owed, the IRS said in a statement Wednesday.

Generally, the error occurs when a payment was made by a spouse who was the second-listed taxpayer on the return (secondary spouse). The IRS said its programming does not credit payments made by the secondary spouse to the couple's joint account when they are either (1) not made electronically; (2) made electronically but posted "before the joint return indicator is present to identify the primary taxpayer"; or (3) made by the secondary spouse via the Make a Payment feature of an online IRS account.

Affected taxpayers who have fully paid the correct amount of taxes due do not need to respond to an erroneous notice, the IRS said. Those who paid only part of their taxes due should pay the remaining correct balance either in full or enter into an installment agreement or other collection alternative. Taxpayers with an online account under the Social Security number of the taxpayer who made the payment can check the account to ensure the payment was credited.

"What should I do if I receive a CP14 notice by mistake?" Taxpayers should retain the erroneous notice and verify their taxes were in fact paid and credited properly, which can be done with an IRS online account.

If you or someone you know is having IRS issues, please feel free to contact me at (609)410-9154 or by email at [email protected]

08/03/2022

How to have a tax levy released
created By Barry Nelson
Education & Training with Barry C. Nelson, CPA CPA NJ # 20CC01864400
August 02, 2022 07:05 AM
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The main focus of my practice is taxpayer representation involving IRS tax issues and compliance. We can contact the IRS immediately to resolve your tax liability and request a levy release. The IRS will release a levy if it determines that the levy is causing an immediate economic hardship. If the IRS denies your request to release the levy, we can appeal this decision. We can appeal before or after the IRS places a levy on your wages, bank account, or other property. After the levy proceeds have been sent to the IRS, we file a claim to have them returned to you. We can also appeal the denial by the IRS of your request to have levied property returned to you.

The IRS is required to release a levy if it determines that:

You paid the amount you owe,
The period for collection ended prior to the levy being issued,
Releasing the levy will help you pay your taxes,
You entered into an Installment Agreement and the terms of the agreement don’t allow for the levy to continue,
The levy creates an economic hardship, meaning the IRS has determined the levy prevents you from meeting basic, reasonable living expenses, or
The value of the property is more than the amount owed and releasing the levy will not hinder our ability to collect the amount owed.

The release of a levy does not mean you don’t have to pay the balance due. You must still make arrangements with the IRS to resolve your tax debt or a levy may be reissued.

If you or someone you know is having an IRS issue, please feel free to contact me at (609)410-9154 or by email at [email protected]