Gary C Wong, CPA PC

08/12/2024

We all know social media isn't necessarily the place you should get authoritative information about serious things in your life. So why would you believe someone discussing tax hacks there either?

Right now there's a scam circulating called the Household Employment Taxes Scam. Social media scammers tell you to make up household employees and claim wages for them on Schedule H (Form 1040). They advise claiming sick and family leave wages that you never actually paid.

Filing false claims like these can lead to severe penalties, including fines and potential criminal prosecution. The IRS will hold your refund and require proof of these wages.

This is one of four out there right now. If it sounds too good to be true or promises you a bigger refund in a way that's just not legitimately possible, steer clear.

08/09/2024

Nobody likes dealing with audits. A simple solution to helping you avoid audit triggers as much as possible would be to lean on your favorite tax pro to keep you on the right side of things. However, there's never a foolproof guarantee you won't get audited (sometimes your number just comes up).

But, there are some basic steps you can take to keep yourself on the right path with the IRS:
1) Make sure that any third-party income and reports agree with your records.
2) Make sure you have selected the correct forms and schedules to fill out. Ask yourself: Do the forms apply? Am I stretching the situation?
3) Keep track of bank deposits so that all items will be easy to trace. Write the source of the check directly on the deposit slip, especially transfers between accounts, so that these are not inadvertently counted as income.

08/08/2024

Thumbs up or thumbs down on this one:
I dread getting letters from the IRS.

If you don't feel dread, is it because you have a tax professional you trust handling things? Or because you are really good at handling that kind of communication?

Let us know why in the comments.

08/07/2024

If the IRS has come to a decision regarding your tax debt that you don’t agree with, there’s more you can do besides waving the white flag, believe it or not.

And here’s the crazy part… The IRS wants to help you do it.

They actually have an Alternative Dispute Resolution (ADR) program – a powerful program that most tax softwares and professionals don't talk about enough.

ADR is all about resolving tax controversies outside the traditional court system and it includes:

- Early Referral -- for resolving specific issues while your audit is still ongoing
- Fast Track -- where a trained Appeals officer acts as a neutral mediator to help you and the IRS reach common ground quickly (within 40 days)
- Post-Appeals Mediation -- bring in a new, jointly selected mediator to help you and the IRS reach an agreement.
- Binding Arbitration -- involves a neutral decision-maker who issues a binding verdict on the disputed issues.

More on these programs here: https://www.irs.gov/appeals/appeals-mediation-programs

08/06/2024

The game of Monopoly can set off some serious unhappiness if it gets cutthroat enough... worse if someone cheats. Nobody likes a monopolist. Which is why a US federal judge declaring Google guilty of cornering the market on search and text advertising has a lot of people cheering.

Google has illegally held a monopoly in search and text advertising, a federal judge ruled on Monday

08/05/2024

Did you know that when it comes to unpaid tax, the federal government isn't the only one who will come after you?

Unpaid state sales tax can quickly snowball with penalties and fees, just like your federal taxes. On average, states charge a 6.4 percent interest fee on late remission of sales taxes. That might not seem like a huge amount, but there's another piece to the puzzle...
The average PENALTY fee that states levy against a late filer of sales tax is 17.85 percent.

You need to have someone on your side. We can work with states to set up a payout agreement or a payment plan to help you pay back what you owe, as well as help to repair the consequences of any federal actions.

08/02/2024

Does the TV you use for video conferencing get glitchy sometimes? Well, there might be a way to fix that. (This works for your smart TV at home too.)

https://www.zdnet.com/home-and-office/home-entertainment/how-to-clear-the-cache-on-your-tv-and-why-you-should-do-it

08/01/2024

The average American is almost six figures in debt. That definitely sounds like a lot. But it's not all necessarily a bad kind of debt.

Some debts are good. Like the kind that improves your quality of life, increases your net worth, or ups your earning potential, like investing in education or buying a home.

The bad debt is the kind that gets you in trouble... like buying loads of clothes you don't need (and using your credit card to pay for them), buying a new couch because you saw the same one on an influencer's page, or even getting a loan for a fancy new car even though you have a perfectly good car right now. Those kinds of things add up quickly and get harder and harder to pay off.

If you want a healthy financial future (especially in uncertain economic times), you need to figure out what debt is necessary and what isn’t ... and start making some changes.

07/31/2024

Having a good credit score is one thing. We all know that you need that in order to borrow for things like buying a house or a car. But what makes up your credit score?

Here's a breakdown of your credit score and how your habits affect it:
❇️ Payment history (35 percent): This is the most crucial factor. On-time payments are a very important key.
❇️ Amounts owed (30 percent): Keep your credit utilization ratio low. Ideally, aim between 2% and 9% of your total credit limit.
❇️ Length of credit history (15 percent): The longer your positive credit history, the better.
❇️ New credit (10 percent): Avoid applying for too many new credit cards in a short period.
❇️ Credit mix (10 percent): Having a healthy mix of credit types (revolving credit like cards and installment loans) is beneficial.

Knowing the breakdown will help you know better how to build your score.

07/30/2024

The IRS does NOT want to take your house from you.

That's right: it's actually not very easy for the IRS to seize personal property or your house. Property seizure is the last step in a long process in which all other alternatives have been exhausted.

A professional in your corner can help you settle BEFORE you reach that point.

07/29/2024

Airlines are struggling right now even as you and millions of others are heading out on summer travel plans. It's difficult to keep up with demand when you have labor shortages and plane malfunctions.

Now, Southwest (which has a unique boarding and seating setup) is reconsidering its longtime model. And, if you want that cheapest flight option, you'll most likely pay for it in legroom and location.

https://www.thestreet.com/travel/southwest-airlines-plans-drastic-boarding-and-seating-changes

07/26/2024

If you're in debt and you don't have a plan to conquer your debt, then you're going to do more than "lose ground" -- you'll go broke.

It's time to look at ways to increase your debt payments. Paying just the minimum balance is a surefire way to keep the debt around your neck like a noose forever, so dig into that debt by paying it off sooner.