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  Did You Know You Might Owe Taxes On Debt That's Forgiven? Here’s How It Works.   When you owe creditors money that you can't afford to repay, sometimes you may be able to get the debt forgiven or otherwise canceled. When this happens, you no longer owe your creditors the money that you used to owe them.   The IRS, however, usually treats such canceled debt as income that you've received. Income that you could owe taxes on . If you fail to report it or fail to pay your taxes on the cancelled debt, you’ll end up owing penalties and interest and over time, that could be just as big of a hassle as your original debt.   Note : If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed. Go back to our home website to learn more about how we can help you.   When Do I Not

Why Doing Your Own Business Taxes or Resolving Your Own Tax Problem is a Terrible Idea

Running your own business means wearing a lot of hats, from office cleaner and supplies buyer to client schmoozer and payroll maker. But should you add tax preparer to your already long list of duties? What if you have a tax problem with the IRS? What if doing your own taxes creates a tax problem? We often see small business clients, clients with either a schedule C, or a corporation, partnership or LLC,   with payroll and income tax problems, or an audit, simply because they thought they could do it on their own.   It’s a bad idea. If you are used to doing your own taxes when you were an employee or freelancer, you may think that preparing the tax return for your small business will be no big deal. After all, there are plenty of great tools on the market, from expense tracking apps for your smartphone to software like QuickBooks for your laptop. But before you start scanning those receipts and filling out those endless forms, you might want to reconsider. Note; we enco

Tax Tips for the Self-Employed

Tax Tips for the Self-Employed: A Freelancer's Guide to Paying Taxes If you are an employee, you get a p aycheck every pay period and most likely pay little attention to your taxes until the end of the year. Your employer does a lot of the work for you and you get a W2 at the end of the year. However, if you are a freelancer or are self-employed, the responsibility of paying your taxes rests solely upon your shoulders. There are 14+ million American taxpayers currently in the IRS collection division, and it’s easier to land there if you’re self-employed and don’t fully know what to do when it comes to taxes. Below are some simple tips to help you 1) reduce your tax liability and 2) keep you out of tax trouble. Make sure to check with your tax professional to discuss your unique situation. If you’re already tax trouble, you’re not alone but you must take action before the IRS levies your bank account or seizes any property you have. Contact us for a free, no-obligati

Top 10 IRS Audit Red Flags

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.     Click here to contact us! 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, 10

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 the CP90 – 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
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

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 o