Ralph Mendoza, EA

04/18/2026

entered the payment information or you paid online through the IRS site on April 15th. However, you don't see the payment hit your bank account.

This is a reminder it typically takes 1 to 3 business days for an IRS tax payment to clear your bank account after the scheduled date.

While the IRS initiates the debit on the date you specify, the actual processing time depends on the banking system's ACH (Automated Clearing House) speeds and your specific financial institution. During high-volume periods (like right around the April 15th deadline), it is common for the IRS to take a few extra days to process the massive influx of requests. It can sometimes take 7 to 10 days for the debit to appear in these cases.

If you don't see the money leave the account immediately, do not try to pay again. As long as the payment was submitted by the deadline, it is considered timely, even if the bank clears it a week later. Most modern banking apps will show the IRS debit in your "Pending" section a day or two before the balance actually drops.

If 10 days pass and the funds still haven't moved, it’s worth double-checking the bank account and routing numbers on the confirmation receipt to ensure there wasn't a typo.

04/06/2026

on Facebook...sees requests for a reasonably priced tax prepare in the area

I won't answer. It's late in the game and someone is looking to come in at a cheap price. But if their return is simple enough, they could go to the IRS's free Volunteer Income Tax Assistance program (VITA). However, they will need to hurry.

According to the IRS, they will help prepare the following:
• Wages, salaries, tips, etc. (Form W-2)
• Interest and dividends (Forms 1099-INT, 1099-DIV)
• Retirement income (Forms 1099-R, Form SSA1099,RRB-1099, RRB-1099-R, CSA-1099)
• Capital gain/loss (Form 1099-B), limited Schedule D
• State tax refunds and unemployment benefits (Form 1099-G)
• Self-employed income (Forms 1099-NEC, 1099-K), limited Schedule C
• Gambling winnings (Form W-2G)
• Cancellation of debt (Form 1099-C), limited •
Health savings accounts (Form 1099-SA), limited
• Adjustments to income and itemized deductions, limited
• Education credits (Form 1098-T) • Premium tax credit (Form 1095-A)
• Child tax credit, earned income credit, and other miscellaneous credits
• Application for individual taxpayer identification number (ITIN) (Form W-7)
• Sale of Home (Form 1099-S), limited
• Prior Year and Amended Returns, limited
• Foreign students and scholars, limited (select sites only)

What returns will they not prepare?
• Schedule C with net loss, depreciation or business use of home
• Complex Schedule D, Capital Gains and Losses • Forms 8615, 8814 (children’s unearned income)
• Form SS-8 (determination of worker status for purposes of federal employment taxes and income tax withholding)
• Parts 4 & 5 of Form 8962 (Allocation of Policy Amounts, Alternative Calculation for Year of Marriage)
• Returns with casualty/disaster losses

You can check with the IRS on what to bring here:https://www.irs.gov/pub/irs-pdf/p3676bsp.pdf

You can also find a free locator tool here: https://freetaxassistance.for.irs.gov/s/sitelocator

There are less than 10 days away so you better hurry if you wish to use their services.

02/20/2025

Sometimes it’s just like that

12/19/2024

12/05/2024

BTC just hit 100k

11/01/2024

Now that we are in peppermint latte season and Mariah Carey has defrosted, it's the perfect time to talk about some year-end tax strategies that could save you money! Especially if you’re a crypto holder.

The most effective year-end strategy for crypto investors is tax-loss harvesting. This involves selling cryptocurrencies that have declined in value to realize capital losses, which can offset capital gains and potentially reduce your tax liability. By harvesting losses, you can use capital losses to offset an unlimited amount of capital gains. Up to $3,000 in net capital losses can be deducted against other income. If you are filing married separately, you can use up to $1,500 in net capital losses to deduct against other income. Unused losses can be carried forward to future tax years.

Wash sales rules apply to stocks and marketable securities. The wash sale rule prohibits claiming a loss on a security sold if you repurchase a "substantially identical" asset within 30 days before or after the sale. While this rule doesn't currently apply to cryptocurrencies, there are proposals to extend it to digital assets in the future.

Another strategy is to hold crypto for long-term capital gains. If you've held cryptocurrencies for less than a year, consider waiting to sell until you qualify for long-term capital gains treatment. Long-term gains (assets held over 1 year) are taxed at preferential rates of 0%, 15%, or 20% depending on your tax bracket, compared to short-term gains which are taxed as ordinary income.

Crypto holders can also use crypto to make charitable donations. Donating appreciated cryptocurrencies to qualified charities can provide a double tax benefit. First, you can deduct the fair market value of the donated crypto as a charitable contribution. You also avoid paying capital gains tax on appreciation. This strategy works best for crypto held for more than a year.

Before year-end, review all cryptocurrency transactions for the year, including trades, staking rewards, mining income, airdrops and other DeFi activity. Consider using crypto tax software to help compile and categorize your transactions. Having complete and accurate records will ensure all taxable activities are captures. Tax preparers will be grateful to have complete crypto activities to report on your tax returns. Gathering this information early can help streamline your tax preparation process.

Consider familiarizing yourself with the crypto tax forms you will need to file. This includes the following:

• Form 8949 and Schedule D for reporting capital gains/losses
• Schedule 1 for reporting other crypto income like mining or staking rewards
• Form 1099-DA (which will be issued in January 2026 for the 2025 tax year)
• Form 1099-B or 1099-K for any crypto transactions reported in 2024 until the 1099-DA is officially released

By implementing these strategies before year-end, crypto investors can potentially reduce their tax liability and ensure compliance with IRS reporting requirements.

If you have any questions, leave them in the comments below

11/01/2024

How preparing false tax returns can land you in jail.

A San Antonio couple has recently been sentenced to federal prison for tax evasion related to their camping and fishing business. Rachel Olivia Markum, 41, and her husband Robert Markum were both found guilty and received prison sentences for their involvement in the scheme

Rachel Olivia Markum pleaded guilty on May 28, 2024, and was sentenced to 15 months (one year and three months) in federal prison. Her husband, Robert Markum, pleaded guilty on April 1 to one count of tax evasion.

Specific charges against the San Antonio couple Rachel Olivia Markum and Robert Franklin Markum Jr. were tax evasion and aiding and abetting.

They were charged with preparing and signing a false and fraudulent Form 1040 joint tax return in 2016. They reported gross receipts or sales of $3,530,473, when the true amount exceeded $4 million

They also created false identities and businesses to hide their income from the IRS. The couple was ordered to pay $359,108 in restitution.

The U.S. Attorney's Office emphasized that by concealing hundreds of thousands of dollars from the IRS, the couple betrayed the integrity of the tax system

You can read more about it here: https://www.ksat.com/news/local/2024/10/31/san-antonio-couple-sentenced-to-federal-prison-for-tax-evasion-ordered-to-repay-over-350k/

10/31/2024

Did Donald Trump propose eliminating taxes on crypto capital gains?

Yes! Donald Trump has proposed eliminating taxes on cryptocurrency capital gains, specifically for American-made crypto assets. Trump has suggested eliminating capital gains taxes on cryptocurrencies, with a focus on American-made crypto assets. This proposal comes as part of his broader economic plans discussed in recent interviews and campaign events.

• Trump proposed zero capital gains tax for Bitcoin and US-made cryptocurrencies
• He criticized the current system where crypto transactions, like buying coffee with Bitcoin, incur capital gains tax
• This proposal is part of Trump's larger idea to potentially replace income taxes with tariffs

What would be the implications of no tax on crypto capital gains?

• It could boost the Bitcoin economy and crypto adoption in the US
• The US might become more attractive for crypto investors and businesses
• It could be a game-changer for the crypto industry, potentially igniting new growth

This proposal comes as cryptocurrencies have become a key issue for voters in the 2024 election cycle. It's important to note that this is currently just a proposal and would require legislative action to become law.

Trump's stance on crypto taxes appears to be part of his broader economic platform, which includes other tax-related proposals such as eliminating income taxes in favor of tariffs and exempting various types of income from taxation.

You can read more about the proposal here: https://www.altcoinbuzz.io/cryptocurrency-news/trump-proposes-zero-tax-on-american-crypto-assets/

10/31/2024

The 2024 Schedule 1 introduces a groundbreaking change for cryptocurrency enthusiasts and digital asset investors.

For the first time, the IRS has included a dedicated line specifically for reporting digital asset income, signaling a new era of clarity and compliance in the rapidly evolving world of crypto taxation.

The IRS is making a change to Schedule 1 for 2024 in the release of its draft form to include digital asset income reporting:
https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

The 2024 draft Schedule 1 includes a dedicated section for reporting income from digital assets.

This reflects the growing importance of cryptocurrencies, NFTs, and other digital assets in taxpayers' financial activities. The new Schedule 1 is designed to work in conjunction with the Form 1099-DA, which brokers will use to report digital asset transactions in 2025.

While Form 1099-DA reporting will not begin until the 2025 tax year, the 2024 Schedule 1 prepared taxpayers with the upcoming change.

What crypto income is reported on Schedule 1?
• Income from airdrops
• Income from hard forks

• Income from staking rewards and mining (not subject to self-employment tax)
• Other crypto hobby income

Currently income from crypto has been reported on Schedule 1, line 8z under Other Income with a brief description.

Having ordinary crypto income reported on Schedule 1, line 8v, Digital assets received as ordinary income not reported elsewhere, will make it easier for taxpayers to report digital asset income.

Attached is a copy of the form:

10/31/2024

Happy Halloween friends 🎃👻