All County Tax

12/10/2019

Here’s everything you need to know about your 2020 taxes

The IRS has just released its figures for the 2020 tax year. Here's how to find out what tax bracket you'll be in next year and how much you can save in tax-advantaged accounts.

09/05/2019

MarineMax is steadfast in helping our communities during challenging times such as Hurricane Dorian.

06/04/2019

Here’s the tax bill on the $444 million Mega Millions jackpot and $350 million Powerball haul

If you went with the cash option — most winners do — the IRS would withhold tens of millions of dollars before the windfall reaches you.

10/24/2018

Top 10 IRS Audit Red Flags

No one wants to pay more income taxes than they are required to, but be careful if you do your own taxes. Attempting to cut your tax liability by getting into IRS grey areas can cause you problems later on. You don't have to do anything unethical to get your return pulled for an audit, you just have to raise too many of these red flags. If you’re in the middle of an audit or owe back taxes, contact us to schedule a free consultation.
www.clearcuttaxsolutions.com

1. Making too much money. Sounds like a problem everyone would like to have, but making over $200,000 may make you more likely to be audited. The fact is that there are fewer auditors, so the IRS is focusing on where they can make the most bang for the buck.

2. Not reporting all your income. No matter how much or little you make, report everything. In some way or other, unless you run a strictly cash business (another red flag), all of your income is reported to the IRS. W2, 1099 and other forms you receive are duplicated and sent in to the IRS. If your reported income doesn't match theirs, that's one more red flag.

3. Math errors. Whether you file electronically or still file paper forms, your information gets entered into a computer. And one thing computers are very good at is doing math. If things don’t add up, or there was an honest mistake in inputting the information, it can raise a red flag. A math error won't necessarily get you an audit, but it will get attention you may not want. Make sure to double check your returns and have a qualified tax professional assist you and keep you out of tax trouble.

4. Home businesses that never make money. Sole proprietorships that file a Schedule C year after year and always show a loss will raise a red flag. Even if you show a profit, but the profit margin is always unreasonably small, that will get the IRS' attention.

5. Large charitable deductions. There is nothing wrong with being charitable and there is no legal limit to how much of your hard earned cash you can give away, but if your donation is out of sync with the norm, that's another red flag.

6. Overstating business expenses. Depending on the type of job you have, there can be many legitimate expenses that your employer doesn't reimburse you for. If you’re a business, you might be tempted to write off just a little extra. These might be genuine deductions. But don't try to deduct something that's not on the approved list and don't claim deductions way outside the norm. Check with your tax professional and stay up to date with tax laws so you’re not padding your tax return with write offs.

7. Sketchy real estate rental revenue or losses. Some people will 'rent' their property to friends or family at well below market value and then claim normal rental business expenses. As with other areas, the IRS compares what you claim against local standards to determine if this is a legit business. If not, they will disallow the deductions.

8. Home office deductions. There are absolutely legitimate home office deductions but the IRS has very strict guidelines on what you can claim and how much. Try to claim too much and this is a classic red flag.

9. Claiming losses for things that aren't deductible or deductible in your circumstances. One example is claiming day-trading losses on a Schedule C. If you dabble in stock trading and take a loss, it may or may not be deductible, but almost certainly doesn't qualify for a Schedule C loss. You also can't take a deduction for alimony. The IRS maintains a list of non-deductible expenses, make sure to check that and check with your tax professional.

10. Claiming 100% business use of your vehicle. If you spend most of the time in your vehicle doing your job, you may think it's easier just to claim the whole thing for business. Wrong. You will either have to show your personal use, no matter how small, or show you have a second vehicle for personal use.

Many of these items are red flags for an audit, but many are also legitimate deductions. The key is to have a qualified tax professional on your side, especially someone who is well experienced in tax resolution and can help you minimize the risk of an audit and the resulting tax problems down the road. At the very least, keep meticulous records and make sure you are inside the guidelines of the IRS.

If you need an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. www.clearcuttaxsolutions.com

09/06/2018

IRS seeking nearly $500B in back taxes

WASHINGTON (SBG) - The Internal Revenue Service is on a mission to collect hundreds of billions of dollars owed in back taxes from delinquent taxpayers and is now enlisting other government agencies to help. How much is still owed by U.S. taxpayers? The IR

09/04/2018

Planning to travel next year? Thousands of Americans may be denied a passport this year. The law states that if you owe more than $51,000 in federal tax – classed as “seriously delinquent” – your passport must be denied or revoked. So make sure your back taxes are taken care of before booking that vacation!

The government is now enforcing the 2015 law which states you will be denied a passport if you owe a lot of federal tax.

11/16/2017

Individual Taxpayers: Seven Things to Do When an IRS Letter Arrives
The IRS mails millions of letters to taxpayers every year for many reasons. Here are seven simple suggestions on how individuals can handle a letter or notice from the IRS:
1. Don’t panic. Simply responding will take care of most IRS letters and notices.

2. Read the entire letter carefully. Most letters deal with a specific issue and provide specific instructions on what to do.
3. Compare it with the tax return. If a letter indicates a changed or corrected tax return, the taxpayer should review the information and compare it with their original return.
4. Only reply if necessary. There is usually no need to reply to a letter unless specifically instructed to do so, or to make a payment.
5. Respond timely. Taxpayers should respond to a letter with which they do not agree. They should mail a letter explaining why they disagree. They should mail their response to the address listed at the bottom of the letter. The taxpayer should include information and documents for the IRS to consider. The taxpayer should allow at least 30 days for a response.
When a specific date is listed in the letter, there are two main reasons taxpayers should respond by that date:
 To minimize additional interest and penalty charges.
 To preserve appeal rights if the taxpayers doesn’t agree.
6. Don’t call. For most letters, there is no need to call the IRS or make an appointment at a taxpayer assistance center. If a call seems necessary, the taxpayer can use the phone number in the upper right-hand corner of the letter. They should have a copy of the tax return and letter on hand when calling.
7. Keep the letter. A taxpayer should keep copies of any IRS letters or notices received with their tax records.

11/13/2017

Check out www.clearcuttaxes.com

11/04/2017

Ways and Means Unveils Its "Big, Beautiful Christmas Present"
In his usual Art of the Deal manner, President Trump sold his party's tax reform plan yesterday, "We are giving them a big, beautiful Christmas present in the form of a tremendous tax cut, which will be the biggest cut in the history of our country." Whether it is the bigliest tax cut in history, it is certainly a present for some and a lump of coal for others. At the top of the Good-Little-Children list is corporations with high effective tax rates. The proposal would slash the corporate income tax rate from 35 to 20 percent, costing $1.4 trillion over 10 years. GOP leaders are gambling that this rate cut will spur significant job growth.

How it effects families will depend a lot on where they live and how reliant they are on specific deductions. Personal tax brackets will go from seven to four: 12 percent, 25 percent, 35 percent, and 39.6 percent. Standard deductions double for most taxpayers, but they repeal the personal exemption. On the other hand, they increase the child credit to $1,600 per child and extend the credit to those earning $230,000. The proposal eliminates the Alternative Minimum Tax but repeals most exclusions and itemized deductions. The exceptions are mortgage interest (capped at $500,000 and no second mortgages), state and local property taxes (capped at $10,000), and charitable contributions.

So, what is repealed?
• Tax preparation
• State and local income and sales taxes
• Medical
• Alimony
• Moving
• Casualty losses
• Medical savings accounts
• Employee expenses
• Employer provided housing
• Employee achievement awards
• Dependent care
• Adoption assistance
• Some education related provisions

08/29/2017

The Internal Revenue Service today issued a warning about possible fake charity scams emerging due to Hurricane Harvey and encouraged taxpayers to seek out recognized charitable groups for their donations.
While there has been an enormous wave of support across the country for the victims of Hurricane Harvey, people should be aware of criminals who look to take advantage of this generosity by impersonating charities to get money or private information from well-meaning taxpayers. Such fraudulent schemes may involve contact by telephone, social media, e-mail or in-person solicitations.
Criminals often send emails that steer recipients to bogus websites that appear to be affiliated with legitimate charitable causes. These sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities in order to persuade people to send money or provide personal financial information that can be used to steal identities or financial resources.
IRS.gov has the tools people need to quickly and easily check the status of charitable organizations.
The IRS cautions people wishing to make disaster-related charitable donations to avoid scam artists by following these tips:
• Be sure to donate to recognized charities.
• Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, through which people may find qualified charities; donations to these charities may be tax-deductible.
• Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution. Scam artists may use this information to steal a donor’s identity and money.
• Never give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the donation.
• Consult IRS Publication 526, Charitable Contributions, available on IRS.gov. This free booklet describes the tax rules that apply to making legitimate tax-deductible donations. Among other things, it also provides complete details on what records to keep.

07/28/2017

https://www.facebook.com/uniladmag/videos/2860001440689563/?hc_ref=ARTXOpC-2fhX1NWQHQnMmu5-L5tF4zyfp5GrJSOEvG6tBxW6uIZtHANz8M5xaUFoD98

06/13/2017

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Welcome to the Internal Revenue Service's official YouTube channel, featuring IRS-produced videos on various tax administration topics. The U.S. government d...