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I’m In Tax Trouble, What Are My Options?

I’m In Tax Trouble, What Are My Options?A letter from the IRS is rarely a good thing. One of the worst missives to get from the tax man is theCP90 – Final Notice Before Levy. It is a final warning shot to scare you into paying up and should not be ignored.
After an IRS final notice, you could: ●Pay in full - but if you could afford to do that, you probably already would have done so. ●Sign on for an installment agreement on your own, with penalties and interest so excessive it will never end. ●Ignore them and wait for terrible consequences like garnished wages and tax liens. Don’t do this, ever. ●Contact your tax resolution professional to see what your resolution options are.
The CP90 intends to intimidate you into calling so the IRS can take as much as possible from you even if it leaves you in dire financial straits, unable to pay your bills or support your family.
A better option is to work with a certified tax resolution expert that can negotiate on your behalf for better results. A ta…
Valued Clients, Please take a look at the scams the IRS is warning people about!  The first 3 scams are the most prevalent, and the most dangerous!   If you have any questions, please call our office first! Len Every year, the IRS releases a list of what it calls the worst tax scams of the year. Beginning Feb. 1 and ending on Feb. 17, the IRS issued a news release each day highlighting a scam. These “dirty dozen” scams can be encountered at any time of year, but the IRS reports that they peak during tax season. 1. Identity theft According to the IRS, the No. 1 scam this year is tax-related identity theft, which the IRS defines as when someone uses a taxpayer’s stolen Social Security number to file a tax return claiming a fraudulent refund (IR-2016-12). Although the IRS has introduced more effective screening and detection systems that are designed to detect identity theft before it issues a refund, the Service admitted that it is still a major problem. To fight the problem more effect…

Selling Business Property - Capital Gain? Ordinary Income? Help?

I had a question recently about the sale of a business property (house/office and land) and how it would be taxed after the sale.  In this case, the property owner had used it for his law practice for many years....you've seen the small houses near the "downtown" area of your local community; many are occupied by attorneys as their offices.

So, here are the facts.  He bought the property in 1984, used it to run his law practice, and now has sold it for about twice the purchase price.  For simplicity sake, he bought for $50,000, and sold in 2014 for $100,000.  Of course, the property is fully depreciated, so his basis in the property is $0. (Basis = sales price - depreciation) His question for me?  How much tax will I owe?

It would be nice if I could tell him that the gain is all Long Term Capital Gain(LTCG), taxed at 15% (for his tax bracket)....so you owe $15,000 in taxes on this sale.  However, there's this little problem about the depreciation he's taken over…

New Website Up and Running!

Our small firm is very excited about the new website that is now up and running!  Please visit us at http://leonardcpa.net and sign up for our newsletter!  We hope to provide you with tax tips and planning resources that will help you keep the money in your pocket...and away from the IRS...using all legal, moral, and ethical means, of course!

New Website Coming Soon!

I am very excited about our soon-to-be-introduced website, www.leonardcpa.net! It should be up and running on June 20th, 2015.  Our goal is to provide quality tax preparation for both businesses and individuals as we always have, but we are very excited about introducing a new service:  Representing clients before the IRS, or Tax Resolution Services!  This new service will be prominent in our complete service offering at Leonard G. Nelms, CPA, P.C.

I talk to so many people that are just completely intimidated by the IRS.  Don't be that person!  This blog will be dedicated to helping you understand your options if you have a tax debt problem, and to providing tips for dealing with the IRS.  However, if your situation warrants professional help to resolve the issue(s), we would love the opportunity to discuss how we might work for a good outcome for you - whether individual or business.  We offer a free consultation, and will clearly explain your options - we will work together! 

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