Allan Rolnick's (taxcoach) Blog

Corporate Expenses-What You Need to

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Mon, 03 Mar 2025 12:38:19 -0800

Here’s a short note on your payments of corporate expenses.Your Corporation Is a Separate Legal EntityAs a business owner operating through a corporation, you need to remember that the corporation is a distinct legal entity separate from you.Avoiding Costly MistakesIf you incur expenses related to business travel, meals, lodging, or mileage without seeking reimbursement from your corporation, the corporation does not receive a tax deduction for these costs. Furthermore, you cannot personally deduct these expenses on your individual tax return, as the Tax Cuts and Jobs Act (TCJA) eliminated unreimbursed employee business expenses as an itemized deduction from 2018 through at least 2025.The Right Way: Accountable Plan ReimbursementsTo ensure tax compliance and financial efficiency, you should submit an expense report to your corporation and receive reimbursement under what is known as an “accountable plan.” When structured correctly, an accountable plan provides the following benefits:• You receive tax-free reimbursements for legitimate business expenses.• Your corporation gets the full tax deduction for the expenses reimbursed.• Proper documentation protects you in the event of an IRS audit.Steps to Implement an Accountable PlanTo maintain compliance and ensure proper reimbursement, follow these best practices:• Maintain detailed records. Keep receipts, mileage logs, and business purpose explanations for all expenses.• Submit expense reports. Provide written reports to your corporation, outlining the details of each expense.• Ensure timely reimbursement. Have your corporation reimburse you within a reasonable time frame.• Avoid overpayments. Return any excess amount if your corporation advances funds for expenses.Take Action NowTo ensure that you maximize tax benefits and stay compliant, I strongly recommend implementing a formal reimbursement process. If you want my help establishing an accountable plan or structuring your reimbursements correctly, please call me on my direct line at 718-841-7317

Can Real Estate Professional Status Free Up Old Passive Losses?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Wed, 01 Jan 2025 11:50:07 -0800

Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional. Let’s say you get there. Does that status allow immediate use of suspended passive losses? Unfortunately, the answer is no. Here’s why. Understanding Passive Loss Rules The tax code limits passive loss deductions to passive income, with any excess carried forward to future years. You release the carried-forward losses when you have offsetting passive income from the same or other passive activities, or completely dispose of the activity generating the loss. Real Estate Professional Status Qualifying as a real estate professional under IRS rules requires meeting two tests annually: Spend more than 50 percent of your work time in real property trades or businesses. Perform at least 750 hours of your work in real property trades or businesses. Material Participation Additionally, you must materially participate in the rental activity to create non-passive losses. The Two-Part Solution Meeting (1) the real estate professional test and (2) the material participation standard allows current-year rental losses to offset non-passive income, such as wages or business income. Impact on Prior Passive Losses Qualifying as a real estate professional is not retroactive. Suspended passive losses from prior years remain subject to the original rules. You can use the prior suspended losses in the following ways: To offset passive income from the same or other passive activities When you completely dispose of the activity that created the suspended passive losses Key Takeaways Real estate professional status offers valuable tax benefits for your rental properties but does not free up prior passive losses. Annual testing is required to maintain this status. If you want to discuss your rental properties and the passive loss rules, please call me on my direct line at 718-841-7317.

Year End Tax Strategies For Crypto Investors

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 10 Dec 2024 14:10:55 -0800

2024 has been a great year for investors in cryptocurrency, with Bitcoin reaching all-time highs. With high profits can come high taxes. Fortunately, there are several strategies you can employ before year-end to reduce your 2024 crypto taxes. If you invested only in Bitcoin, you may not have any crypto losses. But you could have losses if you invested in other forms of crypto. If so, you should consider selling your losers before the end of the year. You may fully deduct your losses from any capital gains you realize during the year, such as gains from selling other crypto or stocks at a profit. If your losses exceed your capital gains for the year, you can use your remaining losses to offset up to $3,000 in personal income. You can carry any unused losses over to future years to offset future gains or income. Donating appreciated crypto to charity is a great tax strategy if you’re charitably inclined. You’ll not only help a charity, but you’ll also get two terrific tax benefits: You avoid long-term capital gains taxes on your appreciated crypto. You can get a charitable contribution deduction equal to the appreciated value. To obtain the benefits above, you (a) must itemize your deductions on Schedule A and (b) have held the crypto for over a year. You should also consider giving crypto to a child, grandchild, or other loved one. For 2024, you may gift up to $18,000 to an unlimited number of people without triggering any tax or reporting obligation for you or the recipients. If you’re married, you and your spouse may gift $36,000. Another strategy is establishing a self-directed IRA or a self-directed solo 401(k) to purchase crypto. You can use a self-directed regular or Roth IRA or 401(k). I’m Allan from the Tax Rescue Squad. When not discussing taxes, I love watching old movies, police procedure television shows, and caring for two birds. If you want to discuss your crypto holdings or any other tax problem, please call me on my direct line at 718-841-7317

2024 Year End Tax Strategies For Crypto Investors

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 10 Dec 2024 14:03:58 -0800

Taxation of Cryptocurrency-What You Need to Know

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Sat, 07 Dec 2024 13:29:54 -0800

What is an Installment Agreement and Who Can Qualify?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Fri, 08 Nov 2024 07:56:32 -0800

If you owe the IRS and can’t pay your tax debt all at once, there is a solution that can help you manage payments over time. This option is called an Installment Agreement, and it provides taxpayers a structured way to resolve their debt without risking aggressive collection actions. Let’s explore what an Installment Agreement is, who qualifies, and two examples that show how it can help.What Is an Installment Agreement?An Installment Agreement is a payment plan arranged with the IRS that allows taxpayers to pay off their tax debt in smaller, manageable monthly installments rather than a lump sum. While interest and some penalties continue to accrue until the debt is fully paid, entering an Installment Agreement can prevent more severe consequences like wage garnishments, bank levies, and possibly property liens. The primary goal is to help taxpayers avoid financial hardship by spreading payments over time.Who Can Qualify for an Installment Agreement?Most taxpayers with unpaid federal taxes are eligible for some form of Installment Agreement, but certain criteria determine the type of agreement available. Here’s what the IRS considers:• Amount Owed: If you owe $50,000 or less in combined tax, penalties, and interest, you may qualify for a streamlined installment plan, which generally requires less documentation for approval.• Current Filings: You must be up-to-date with all your tax filings. The IRS requires that all past-due tax returns be filed before an Installment Agreement is approved.• Payment Capability: The IRS will assess your income, assets, and expenses to determine if an Installment Agreement is viable. In cases of severe financial hardship, you may qualify for lower monthly payments.An Installment Agreement can be a practical solution for individuals and businesses with limited cash flow who need time to pay off their debt without further jeopardizing their financial situation.Installment Agreement Example: How It WorksLet’s look at a hypothetical example to see how an Installment Agreement might play out in real life.Scenario:Sarah, a freelance consultant, owes the IRS $30,000 in back taxes after a challenging year financially. She cannot pay the entire amount upfront without depleting her savings and putting herself in financial strain.Sarah consults a tax resolution specialist, who advises her to apply for an Installment Agreement. The tax resolution specialist checks her transcripts for compliance history and penalty abatement opportunities. Because of the amount owed, the tax resolution specialist can request a payment plan without submitting her financial details to the IRS. Sarah is approved for a monthly payment plan of $500 over five years, which she can afford without compromising her essential expenses.Result:By entering into an Installment Agreement, Sarah avoids potential levies on her bank account and other assets. She’s able to make smaller payments each month, which relieves the financial pressure and allows her to pay down her tax debt gradually while avoiding severe IRS actions.How We Can Help You with an Installment AgreementQualifying for an Installment Agreement isn’t always straightforward, and navigating IRS requirements can be challenging. That’s where we come in. At TriState Tax Resolution The Tax Rescue Squad, our Specialists will:• Review Your Financial Situation: We’ll analyze your tax debt, income, expenses, and assets to determine the best possible payment plan.• Negotiate with the IRS: Our team knows how to present your case to the IRS and negotiate terms that work with your budget.• Ensure Compliance: We’ll help you avoid errors in your application, ensuring all forms are filed correctly and on time.If you owe the IRS and want to explore your options for an Installment Agreement, or other tax relief options, contact us today at 718-841-7317 for a free 15-minute consultation. We’ll help you develop a realistic plan to resolve your tax debt and regain financial stability.

What to Do When You Get an IRS Notice (Don’t Do What Most People Do!)

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 05 Nov 2024 12:37:55 -0800

Allan RolnickTax Accountant | Tax Advisory, Tax Planning, Tax Resolution Tax Audit RepresentationNovember 5, 2024Receiving a notice from the IRS can be unsettling. Whether it's about unpaid taxes, an audit, or missing information, it’s a letter that nobody wants. However, ignoring the notice is the worst response—and unfortunately, that’s exactly what many people do. Failing to address IRS correspondence can lead to compounding penalties, mounting interest, and sometimes even aggressive collection actions. Let’s go over what not to do and, more importantly, the steps you shouldtake when the IRS comes calling. 1. Don’t Ignore It Many taxpayers avoid IRS notices, hoping the issue will somehow resolve itself. But the IRS doesn’t forget. Ignoring a notice won’t make it disappear; in fact, it only worsens the situation. Interest and penalties continue to build over time, and the IRS will eventually escalate collection efforts, potentially leading to wage garnishments, bank levies, or liens on your property. What to Do Instead: The best course of action is to open the letter promptly, understand what the IRS is asking, and determine if there’s a deadline to respond. If you’re not sure how to proceed, reach out to a tax professional who can interpret the notice and guide you on the next steps. Acting quickly can help keep the situation manageable. 2. Don’t Panic - Create a Plan A common reaction to receiving an IRS notice is to scramble to pay off any indicated balance, sometimes even resorting to high-interest loans or credit cards. While it’s understandable to want the debt gone, taking on more debt or liquidating assets hastily can lead to further financial strain. Don’t forget the IRS sometimes makes mistakes too, and it’s possible you may pay off something you didn’t even owe! What to Do Instead: Carefully review the amount the IRS says you owe and consider your options. The IRS often offers payment plans or settlement options, like the Installment Agreement or Offer in Compromise, which may allow you to pay less than the total balance. A tax professional can help you decide which payment method is best, without unnecessarily draining your resources. 3. Don’t Try to Handle Complex Issues Alone Responding to certain IRS notices, especially those related to audits, can be intricate and overwhelming. Trying to manage this on your own can lead to misunderstandings, incomplete responses, and missed opportunities for relief programs. What to Do Instead: If your IRS notice involves an audit or a significant amount of tax debt, seek assistance from a tax resolution specialist. These professionals know how to navigate IRS procedures and can represent your best interests. They’ll help ensure that you provide accurate responses, avoid missteps, and explore options for reducing penalties. How a Tax Resolution Company Can Help Dealing with IRS notices can be intimidating, but you don’t have to do it alone. A tax resolution company like Tristate Tax Resolution The Rescue Squad is here to make the process easier and more manageable. Here’s how we can assist: Reviewing Your Notice: We’ll help you understand exactly what the IRS is requesting and determine the best way to respond. Negotiating on Your Behalf: Our tax resolution specialists work directly with the IRS to explore options like installment agreements, Offers in Compromise, or Currently Not Collectible status. Stopping Collection Actions: If the IRS is threatening liens, levies, or garnishments, we can work to halt these measures while we resolve your case. Keeping You Compliant: We’ll also guide you in staying on top of future tax obligations to avoid similar issues. At Tristate Tax Resolution The Rescue Squad, we have the experience to manage any IRS situation effectively. Don’t let an IRS notice become a larger problem. Contact us at 718-841-7317 for a free 15-minute consultation, and let’s tackle this together.

What is an Offer in Compromise (OIC) and Who Can Qualify?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Fri, 25 Oct 2024 13:03:30 -0700

What is an Offer in Compromise (OIC) and Who Can Qualify?Allan RolnickOctober 25, 2024 If you owe the IRS more than you can afford to pay, there may be a way to settle your tax debt for less than the full amount owed. This option is called an Offer in Compromise (OIC), and it can provide a fresh start for taxpayers facing overwhelming debt. However, not everyone qualifies, and it’s important to understand the process before applying.What Is an Offer in Compromise (OIC)?An Offer in Compromise is an agreement between a taxpayer and the IRS to settle a tax debt for less than the full amount. The IRS considers your income, expenses, and the value of your assets when determining if you qualify and how much they’re willing to accept. The goal of the OIC program is to collect what the IRS can reasonably expect, rather than forcing taxpayers into financial hardship.Who Can Qualify for an OIC?The IRS looks at three main factors when considering an OIC:• Inability to Pay: You must prove that you can’t pay the full tax debt through traditional means, such as an installment agreement.• Doubt as to Collectibility: If the IRS believes they won’t be able to collect the full amount within the statute of limitations, you may qualify.• Doubt as to Liability: In some cases, if there’s a legitimate dispute about the amount of tax owed, the IRS may accept an offer.Generally, if you have significant income or assets that can cover your tax debt, you likely won’t qualify. But if paying the full debt would cause financial hardship, you may be a good candidate.OIC Example: How It WorksLet’s look at a hypothetical example to see how an OIC might play out in real life.Scenario:John is a self-employed graphic designer who owes the IRS $50,000 in back taxes, including penalties and interest, after several tough years of business. He’s been unable to make payments and now faces the possibility of IRS collection actions.John doesn’t have the ability to pay the full $50,000 without going into financial ruin, so he decides to explore the OIC program with the help of a tax resolution specialist.After reviewing John’s income, expenses, and assets, the tax professional determines that the most they could reasonably expect to collect from John is $6,000. The IRS approves his OIC, allowing him to settle the $50,000 debt by paying just $6,000 over 24 months.Result:Instead of paying the full $50,000, John settles his debt for $6,000—saving him $44,000. More importantly, he avoids wage garnishments, levies, and the stress of ongoing collection actions.How We Can Help You With an OICQualifying for an Offer in Compromise can be a complicated and lengthy process, and the IRS rejects many applications due to incomplete paperwork or failure to meet strict criteria. That’s where we come in. As experienced Certified Tax Resolution Specialists, we help you determine whether you qualify for an OIC, prepare the required forms, and negotiate with the IRS on your behalf to get the best possible outcome.If you think you might qualify for an Offer in Compromise or know someone who does, contact us at 718-841-7317 today for a 15-minute free consultation. We’ll review your situation and guide you through the steps to financial relief.Who’s Allan Rolnick:With 40 years of experience, I have mastered the art of navigating complex IRS challenges, resolving even the toughest tax issues. I’ve helped countless clients find fair and favorable solutions with the IRS and I can help you too.

The 3 Worst Things You Can Do if You Owe the IRS

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Wed, 23 Oct 2024 21:35:20 -0700

The 3 Worst Things You Can Do if You Owe the IRS Allan RolnickTax Accountant | Tax Advisory, Tax Planning, Tax ResolutionOctober 23, 2024Owing money to the IRS is stressful, and it’s easy to panic or make the wrong moves. Unfortunately, some actions (or inactions) can make the situation much worse, resulting in penalties, interest, and aggressive collection efforts. If you owe the IRS, it’s critical to avoid certain pitfalls that can turn a manageable debt into a financial nightmare. Let’s go over the three worst things you can do when you owe the IRS—and what you should do instead.1. Ignoring the ProblemThe worst thing you can do if you owe the IRS is to ignore the problem altogether. People often think that if they avoid dealing with it, the issue will somehow disappear. The truth is, the IRS doesn’t forget, and the longer you wait to address your tax debt, the worse it gets. Interest and penalties continue to accrue, and eventually, the IRS will start taking more serious action like wage garnishments, bank levies, or property liens.What to Do Instead: If you owe taxes and can’t pay right away, reach out to the IRS or a tax professional as soon as possible. The IRS has programs in place, such as installment agreements, Offer in Compromise, or currently not collectable, that can help you manage your debt. The key is to take action before the IRS ramps up collection efforts.2. Taking Out High-Interest Loans or Maxing Out Credit CardsAnother mistake people make when trying to pay off IRS debt is turning to high-interest loans or credit cards. They often do this because they feel pressured to pay the IRS immediately, but these types of loans can create more financial problems than they solve. The interest rates on credit cards and payday loans are much higher than the interest the IRS charges. In the long run, you could find yourself drowning in even more debt—without making a significant dent in your tax balance.What to Do Instead: Don’t rush to borrow from credit cards or take out a risky loan. Instead, explore options directly with the IRS, such as a payment plan, where you’ll typically pay much lower interest rates. There are also options to defer payments if you’re in a temporary financial hardship.3. Trying to Hide Your Assets or IncomeSome people believe they can outsmart the IRS by hiding income, moving assets around, or not filing returns. This is a major mistake. The IRS has extensive tools to uncover hidden assets, including bank account information, property records, and financial transactions. Failing to report income or hiding assets not only increases your debt but can also lead to criminal charges for tax evasion, which comes with severe penalties, including fines and possible jail time.What to Do Instead: Full transparency is always the best policy when dealing with the IRS. If you’re concerned about your ability to pay, be upfront about your financial situation. The IRS may be willing to work with you through programs like an Offer in Compromise, which allows you to settle your tax debt for less than the full amount owed, or a Currently Not Collectible status, which temporarily halts collection actions if you truly cannot afford to pay.How a Tax Resolution Company Can HelpDealing with the IRS is complicated and stressful, but you don’t have to face it alone. A tax resolution company like [Your Company] can be your strongest ally in resolving tax issues. Here’s how we can help:Assessing Your Situation: We’ll conduct a detailed review of your tax debt, financial situation, and any notices you’ve received from the IRS to determine the best course of action.Negotiating with the IRS: Our team of Certified Tax Resolution Specialists knows how to negotiate directly with the IRS to secure a payment plan that works for you, or in some cases, reduce your debt through an Offer in Compromise.Stopping Collections: If the IRS is threatening to garnish your wages, place a lien on your property, or levy your bank account, we can help stop these actions while we work to resolve your case.Preventing Future Issues: We’ll help you get back on track with future filings, ensuring that you stay compliant and avoid tax problems down the road.At Allan J Rolnick, from TriState Tax Resolution, The Tax Rescue Squad, we’ve seen every type of tax situation and know exactly how to get results. If you or someone you know owes the IRS, don’t wait until the situation gets worse. Contact us at 718-841-7317 for a free 15-minute consultation, and let us help you regain control of your financial future.Who’s Allan Rolnick:With 40 years of experience, I have mastered the art of navigating complex IRS challenges, resolving even the toughest tax issues. I’ve helped countless clients find fair and favorable solutions with the IRS and I can help you too.

Tax Relief Program Spotlight: Partial Payment Installment Agreement (PPIA)

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Sat, 19 Oct 2024 10:55:07 -0700

A Partial Payment Installment Agreement (PPIA) is a payment plan offered by the IRS that allows taxpayers to pay off their tax debt in smaller, more manageable amounts over time. Unlike a standard installment agreement, where you pay the full amount owed, a PPIA allows you to settle your debt for less than the total amount due.This program is particularly beneficial for taxpayers who cannot afford to pay their full tax liability but can make partial payments without causing significant financial hardship.How Does a PPIA Work?The PPIA works by allowing the IRS to assess your financial situation and determine a reduced payment plan that fits within your budget. Here's how the process typically unfolds:1. Financial Disclosure: To qualify for a PPIA, you must submit detailed financial information to the IRS, including income, expenses, assets, and liabilities. This allows the IRS to determine your ability to pay.2. Monthly Payments: Based on your financial information, the IRS will establish a monthly payment amount that you can afford. These payments continue until the tax debt is paid off or the collection statute of limitations expires, whichever comes first.3. Review and Adjustment: The IRS may periodically review your financial situation to determine if your ability to pay has improved. If so, they may adjust your monthly payment amount.4. Potential Debt Forgiveness: If the statute of limitations expires before the full tax debt is paid off, the remaining balance is forgiven, offering substantial relief to taxpayers under financial strain.Eligibility for a PPIATo be eligible for a PPIA, you must demonstrate that paying the full tax debt would cause undue financial hardship. The IRS will closely examine your financial situation, including your ability to meet basic living expenses. If your income is low relative to your debt, or if you have limited assets, you may qualify for this program.Benefits of a PPIAA PPIA offers several benefits for taxpayers struggling with significant tax debt:• Reduced Payment Amount: Unlike a full installment agreement, a PPIA allows you to pay a reduced amount, making it easier to manage your finances.• Prevention of Levies and Liens: Entering into a PPIA can prevent the IRS from taking more aggressive collection actions, such as levying your bank accounts or placing liens on your property.• Potential for Debt Forgiveness: If your payments continue until the statute of limitations expires, any remaining tax debt may be forgiven.Navigating the process of securing a PPIA can be challenging, especially when dealing with the IRS's rigorous requirements. This is where a tax resolution company like ours comes in. Our team of experienced professionals can guide you through the application process, ensuring that your financial situation is presented accurately and that you meet the eligibility criteria.By working with us, you can achieve a manageable resolution to your tax debt, allowing you to regain financial stability and peace of mind. If you believe a Partial Payment Installment Agreement might be the right option for you, contact Allan J Rolnick, The Tax Resolution Ninja, from The Tax Rescue Squad today at 718-841-7317 to explore your options and start the process.Who’s Allan Rolnick:With 40 years of experience, I have mastered the art of navigating complex IRS challenges, resolving even the toughest tax issues.I’ve helped countless clients find fair and favorable solutions with the IRS and I can help you too.

4th Quarter Tax Play: Are You Ready?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Wed, 16 Oct 2024 15:42:00 -0700

4th Quarter Tax Play: Are You Ready? 🏈Ah, New York football fans… it’s been a rough season so far, hasn’t it? Our NYC teams might be losing ground, but luckily, there’s still hope upstate. Speaking of 4th quarters, we’re in the final quarter of the tax year too—and just like football, this is when you win or lose.If you’ve got a tax plan already, congratulations! You’re ahead in the tax game. But hey, even the best teams need to make some halftime adjustments to secure the win. And if you haven’t started on a plan yet, don’t panic. You’ve still got 15 minutes on the clock to tie the score and walk away a winner.Here's how I can help you tackle this tax season like a pro:Join my Q&A session every Monday at 11:00 AM – where I spend an hour answering tax questions. If you:Own a small business or side hustle making $100,000+Haven’t filed taxes in the last 6 yearsOwe the IRS $10,000 or moreThis session is for you! We'll talk tax strategies, tackle those burning questions, and work on your winning playbook.Have a tax plan already? Great! Let’s huddle up and make sure you’re set to score big.No plan yet? Don’t worry—you’ve still got time to start. Fill out the form at https://lnkd.in/eDgWgzNS to join the Q&A. Let’s keep you from fumbling as the clock runs down.Let’s get you ready for a big tax win. Game on!

Has an IRS letter been keeping you up at night?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Fri, 27 Sep 2024 06:54:30 -0700

Has an IRS letter been keeping you up at night?If so, you're in the right place. I understand how stressful and intimidating those letters can be, but with my help, you can breathe easier and get back to a good night's sleep.I host a live Q&A every Monday at 11:00 AM ET where you can ask your questions and get the guidance you need to handle your IRS issues. Simply fill out the form at thetaxresolutionninja.com to register and receive the link.I’m here to help you navigate this and put your worries to rest. Let’s work through this together.

“No one will find out.”

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Thu, 26 Sep 2024 08:34:37 -0700

“No one will find out.”It's a common thought many business owners or side hustlers have when it comes to skipping taxes, but here's the reality: someone always finds out.Maybe it's a friend who talks a little too much, or perhaps it's an employee who unintentionally reveals something they shouldn't. Here are just a few ways this can come back to bite you:Income reporting: Forms like 1099s get sent directly to the IRS, so they know what you’ve earned.State tax filings: If you’re not filing or paying your sales tax correctly, your state will catch up to you eventually.Off-the-books employees: Paying someone under the table may seem like an easy fix, but if they later file for unemployment, it’ll quickly raise red flags.The reality is, they will find out. And if you're behind on taxes, now is the time to take action. While there’s no such thing as a free lunch, the good news is there are solutions to fix the problem before it snowballs.Here’s how you can take control:Get a tax plan in place: A solid tax plan helps you make your estimated tax payments on time and keeps you out of trouble. It's also far less expensive than waiting for someone to find out.If you’re in this situation, I’m here to help. I offer a free, 1-hour tax Q&A every Monday at 11:00 AM ET. This session is designed for:Business owners with income over $100,000Those who owe the IRS $10,000 or moreAnyone who hasn’t filed a tax return in the past six yearsIf you'd like to join, fill out the form at thetaxresolutionninja.com, and I'll send you the link.Let’s get you back on track, so you can focus on growing your business without the tax worries hanging over your head!

🏈 How the Giants’ Comeback Can Inspire Your Tax Plan

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 24 Sep 2024 07:44:42 -0700

🏈 How the Giants’ Comeback Can Inspire Your Tax PlanThis past Sunday, the New York Giants won a big game—yes! But it didn’t start off great. On the very first kickoff, the return runner fumbled and lost the ball, and the Browns scored a touchdown right after. It seemed like another loss was on the horizon.But the Giants didn’t give up. They turned things around, took the lead by halftime, and held on for the win. 🏆This story reminds me of how things can look with your taxes. Maybe you haven’t put together a tax plan yet, and it feels like you’re starting out behind. But just like the Giants, you can turn it around—and there’s plenty of time to do it!💡 Why is a tax plan important?Without one, you risk missing opportunities to reduce your tax bill or, worse, facing a huge, unexpected tax burden come April. Planning ahead is your best defense.Need help creating your tax plan?Join my Weekly Tax Q&A Session every Monday at 11:00 AM!🗓 When: Mondays at 11:00 AM🖱 How to Register: Fill out the form at thetaxresolutionninja.com and I’ll send you the link.👥 Who’s it for? Small business owners earning over $100,000 or those who owe the IRS more than $10,000.No question is too small, and I’m here to help you get on track before tax season hits. Let's tackle this together!

A Guide to Tax Planning For the Real Estate Professional

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 24 Sep 2024 00:00:04 -0700

This morning, as I went to feed my bird, Cleo, he was sitting at the bottom of his cage like he usually does. But today, the moment I opened the door, he ran over to me like he hadn’t eaten in days! It made me think, How great would it be if real estate agents and mortgage brokers came to me with their tax info like that—no chasing required!That got me thinking about how much easier life would be for real estate professionals if they had a tax plan in place. Here’s why a tax plan is a must-have:Know your tax liability in advance: No last-minute surprises when it’s time to file.Minimize your tax bill: A tax plan helps you take advantage of industry-specific deductions, from marketing expenses to travel.Avoid a large bill in April: Plan ahead to avoid any big tax burdens.Pay what you owe—no more: A tax plan ensures you’re not giving the IRS an interest-free loan. (And we all know they wouldn’t do the same for you!)Peace of mind: You’ll be confident that you’ve done everything right and aren’t missing any opportunities to save. With the fourth quarter starting, now is the ideal time to get your tax plan in place. If you already have one, take a moment to review it and make any necessary adjustments. If not, now is the time to start so you can take full advantage of tax-saving opportunities.I run a free, one-hour Q&A session every Monday at 11:00 AM for real estate agents and mortgage brokers who: Earn $100,000+ in revenue, Owe the IRS or State more than $10,000, Or have been contacted by the IRS or State about a tax issue. If you’d like to join, fill out the form at thetaxresolutionninja.com, and I’ll send you the link to register. Let’s make sure your taxes are working for you, not against you!

Struggling with Tax Issues? Here’s How to Find Relief

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Mon, 23 Sep 2024 07:31:56 -0700

**Struggling with Tax Issues? Here’s How to Find Relief**As real estate professionals, we’re often focused on helping clients navigate their biggest investments—buying and selling properties. But when it comes to our own finances, tax problems can sometimes hit hard, leaving us feeling overwhelmed and uncertain.Whether it’s **unpaid tax bills**, **unfiled returns**, or the looming presence of **IRS notices**, these issues can weigh heavily on anyone, especially those of us with businesses to run. If you’re facing these challenges, you’re not alone.I’ve worked with many clients, including real estate professionals, who have found themselves in similar situations:- Facing **unpaid tax bills** and unsure where to turn.- Not having filed a tax return for years, feeling stuck and stressed about it.- Receiving **IRS notices** but too afraid to deal with them.If any of this sounds familiar, there’s good news: You don’t have to face this alone. It’s possible to find peace of mind, and I’m here to help.To support professionals like you, I’m offering a **free one-hour Q&A session every Monday at 11:00 AM**. This is an opportunity for you to ask any tax-related questions and get expert advice in a safe, judgment-free environment. It’s particularly useful if:- You own a small business with **income over $100,000**.- You owe the IRS **$10,000 or more**.- You haven’t filed a tax return in the last six years.**How to Join** Ready to take control of your tax situation? Text me your name and email at **718-841-7317**, and I’ll send you the link to join the session.Let’s work together to remove the burden and help you get back on track, so you can focus on what you do best: helping your clients and growing your business.

Why Planning Matters: Avoid a Tax "Fumble"!

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 17 Sep 2024 11:08:15 -0700

🏈 **Why Planning Matters: Avoid a Tax "Fumble"!**This past Sunday, the New York Giants lost the game because they didn’t bring an extra kicker. They knew their regular kicker was hurt, but didn’t make a backup plan. The result? A loss.⚠️ **Not having a tax plan can be just as costly!** Without a plan, you may miss valuable opportunities to reduce your tax bill. Worse yet, you could be blindsided with a huge tax bill in April that you’re unprepared for.Just like the Giants lost because they didn’t have a backup kicker, you can “lose the tax game” by not having a plan in place. But it doesn’t have to be that way!**Join My Weekly Tax Q&A Session!**- 🗓 **When:** Mondays at 11:00 AM- 📲 **How to Register:** Text your name and email to **718-841-7317**, and I'll send you the link.- ❓ **Who’s it for?** Small business owners with income over $100,000, or if you owe the IRS more than $10,000.No question is too small or too “dumb”—I’m here to help you get ahead of the game. Let's make sure you’re ready to win this tax season!---

Is The IRS Looking For You?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 10 Sep 2024 07:59:35 -0700

Imagine this: you receive a letter from the IRS claiming you owe $50,000 in back taxes. Panic sets in. You start asking yourself, *how am I going to pay for this?* You put the letter down, not sure how to break the news to your spouse or significant other.That night, sleep doesn’t come. You toss and turn, and before you know it, it’s morning, and another exhausting day begins. This pattern continues for days until you just can’t handle it anymore—you shove the letter aside and try to forget about it.A month passes. Another letter from the IRS arrives, and the panic returns. The sleepless nights start again, but this time, it’s worse. Your job performance is slipping, and clients or your employer are on your back about missed deadlines. Then, to top it off, your spouse or significant other stumbles upon the letter. Now the pressure is really on.You know you can’t ignore it anymore. It’s time to take action. Here are your options:- **Call the IRS** directly at 1-800-829-1040 to discuss an arrangement. - **Join my weekly Q&A session** every Monday at 11:00 AM ET, where we dive into solutions for situations just like this. Text me your name and email address at 718-841-7317, and I’ll send you the link. *(Note: You must owe $10,000 or more to attend this session.)*- **Work with me one-on-one** to help resolve the issue personally. Text your name and email to 718-841-7317 to set up a consultation. (You must owe $10,000 or more to qualify for this one-on-one support.)The key thing you **cannot do** is ignore the problem—it will only get worse. Let’s tackle it together before it spirals further.

Is Tax Planning a Necessity?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Tue, 27 Aug 2024 17:13:44 -0700

A colleague of mine is currently helping a client work through a tax debt issue. They had all the paperwork ready and everything set up, but for the resolution to go through, the client needs to be up to date on their taxes. Unfortunately, my colleague discovered that the client missed some estimated tax payments.It’s a tough situation because the client genuinely didn’t have the funds to make those payments. Life can be unpredictable, and sometimes our spending can outpace what we bring home, especially when we’re not factoring in taxes.The reality is, taxes are a part of the bigger financial picture, just like any other major expense. It’s important to plan for them so they don’t catch us off guard. If taxes had been part of the budget from the start, this situation might have been different.Moving forward, it’s worth considering a chat with your tax planner or accountant to ensure everything is lined up. This way, you can enjoy life’s moments, like a big vacation, without the worry of unexpected tax issues down the road. And just as a friendly reminder, the 3rd quarter tax payments are due on September 16. It’s a good time to check in and make sure everything is on track!

Reasonable Compensation Rules-Are You In Compliance?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Thu, 15 Aug 2024 07:39:14 -0700

Hi there!We're just one month away from the deadline for S-Corp extended tax returns. Have you made sure you're in compliance with the Reasonable Compensation Rules? If you’re unsure or have any questions, I’ve got you covered!I’m hosting a 1-hour Q&A session this Monday at 11:00 AM ET, where I'll be diving into the Reasonable Compensation Rules and answering any questions you might have. If you'd like to join, just send me your name, email address, and phone number to allan@thetaxresolutionninja.com, and I'll get you the link.Looking forward to helping you navigate this! Have a great day, and let's tackle those taxes together!

Do you have IRS debt of $10,000 or more?

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Sat, 10 Aug 2024 10:54:58 -0700

Do you have IRS debt of $10,000 or more?Would you like to resolve your IRS debt?Come to my 1 hr weekly Q&A on Mondays at 11:00 AM ETThis a safe space. Do not be embarrassed that you have a tax problem…you are not alone; you are not the only one. Doing nothing is not an option. Send me your name, email, and phone number for the link to allan@thetaxresolutionninja.com

Federal Tax Liens and How to Resolve Them

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Thu, 01 Aug 2024 11:08:50 -0700

Owning a tax resolution firm has given me firsthand insight into the tremendous stress and uncertainty that tax issues can bring. One common issue many face is a federal tax lien, which can complicate financial stability and create significant anxiety.Tax relief companies, like ours, are dedicated to helping individuals manage and resolve such complex tax matters. Our expertise in navigating IRS procedures enables us to alleviate financial burdens and prevent more severe repercussions.In this article, we'll delve into what a federal tax lien is, why it can be a serious problem, and how our specialized services can help resolve it. Understanding Federal Tax LiensA federal tax lien is a legal claim by the government against your property when you fail to pay a tax debt. This claim can affect a wide range of your assets, including real estate, personal property, and financial accounts.Essentially, the lien serves as a way for the government to secure its interest in your property as collateral for the unpaid tax debt. Here’s a closer look at what a federal tax lien entails and the potential implications:How a Federal Tax Lien WorksWhen you owe back taxes, the IRS first sends a bill explaining how much you owe. If you neglect or refuse to pay this debt in time, the IRS can then file a public document called a Notice of Federal Tax Lien. This notice alerts creditors that the government has a legal right to your property.Public Notice: The Notice of Federal Tax Lien is a public record, which means it can be seen by potential lenders, making it harder for you to obtain credit.Priority Over Other Creditors: The lien establishes the IRS's claim over your other creditors, giving the government first rights to your property over other debts you might have. Assets Affected by a Federal Tax LienA federal tax lien can attach to:Real Estate: Any real estate you own, including your home and any other properties, can be claimed by the lien.Personal Property: This includes items like your car, furniture, and other valuable personal items.Financial Accounts: The lien can also attach to your bank accounts, investment accounts, and other financial assets. The Impact of a Federal Tax LienFederal tax liens can cause significant problems, affecting various aspects of your financial life and long-term financial health.Financial StabilityWhile federal tax liens do not affect your credit score, they can still impact your overall financial stability by restricting your ability to manage and utilize your assets freely.Property IssuesA lien attaches to all your current and future assets, including real estate. This can create major complications:Selling Property: If you wish to sell your property, the lien must be satisfied before the sale can be completed, often requiring the tax debt to be paid out of the sale proceeds.Refinancing Difficulties: Refinancing a mortgage with a lien attached to your property is challenging, as lenders may be hesitant to offer favorable terms or any terms at all. Business ImpactFor business owners, a federal tax lien can be particularly devastating:Business Property: The lien can attach to all business property and rights to business property, which can inhibit your ability to operate and grow your business.Credit Lines: With a lien in place, obtaining credit to fund business operations becomes significantly harder, potentially threatening the survival of your business. Legal RepercussionsUnresolved federal tax liens can lead to more severe IRS actions, such as:Levies: The IRS can levy, or seize, your bank accounts, wages, and other assets to satisfy the tax debt.Seizure of Assets: In extreme cases, the IRS may seize and sell your property, including your home, to pay off the tax debt. Reputation and Financial RelationshipsHaving a federal tax lien can damage your reputation with creditors, landlords, and even potential employers. This can affect your ability to rent property, secure employment, or maintain existing credit relationships. Services We Offer to TaxpayersNegotiating Installment Agreements We help taxpayers set up installment agreements with the IRS, allowing them to pay off their tax debt in manageable monthly payments. This can prevent the imposition of more severe penalties and interest, providing a structured way to resolve outstanding tax liabilities.Filing Back Taxes Many individuals fall behind on their tax filings, which can lead to substantial penalties and interest. We assist in gathering the necessary documentation and filing overdue tax returns, ensuring compliance with tax laws and minimizing potential financial burdens.Offer in Compromise (OIC) For taxpayers who cannot pay their full tax debt, an Offer in Compromise may be a viable option. This program allows taxpayers to settle their tax debt for less than the full amount owed, based on their ability to pay. We evaluate eligibility, prepare the necessary paperwork, and negotiate with the IRS to secure the best possible outcome for our clients.Penalty Abatement The IRS imposes various penalties for late payments, filing errors, and other tax issues. We can request penalty abatement on behalf of taxpayers, arguing for the reduction or removal of these penalties based on reasonable cause, such as financial hardship or unforeseen circumstances.Currently Not Collectible (CNC) Status When a taxpayer is unable to pay their tax debt without causing significant financial hardship, they may qualify for Currently Not Collectible status. This status temporarily halts IRS collection activities, such as wage garnishments and levies, giving the taxpayer time to improve their financial situation. How a Tax Resolution Company Can HelpNavigating the complexities of a federal tax lien can be overwhelming. This is where tax relief companies come in, offering specialized services to help you manage and resolve your tax issues: Lien Withdrawal: We can request the IRS to withdraw the public notice of your tax lien if you meet certain criteria, which can help restore your financial standing. Subordination: This allows other creditors to move ahead of the IRS, improving your chances of securing loans or credit despite the lien. Discharge of Property: We can assist in removing the lien from a specific property, facilitating its sale or refinancing. Installment Agreements: Setting up manageable monthly payments to resolve your tax debt, potentially leading to the lien’s release. Offer in Compromise (OIC): Negotiating with the IRS to settle your tax debt for less than the full amount owed, which can result in the lien being lifted upon acceptance. By seeking professional help, you can navigate the resolution process more effectively, mitigate the impact of a federal tax lien, and take steps toward financial stability. Contact me at 718-841-7317 today to explore your options and start resolving your tax issues.

Tax Strategy for Converting Your Home To Rental Property

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Sat, 22 Jun 2024 14:15:27 -0700

When contemplating the conversion of your home into a rental property, one viable tax strategy is selling it to your S corporation. This approach provides two distinct tax advantages: Home Sale Profit Tax Exemption: By transferring your home to an S corporation, you can utilize the home-sale profit exclusion, available up to $500,000 for married couples. This means any gain from the sale of your home, within the set limits, may not be taxed, provided eligibility criteria are met. Increased Depreciation Deductions: Selling your home to your S corporation establishes a new, higher basis for depreciation, allowing for greater annual depreciation deductions. This means each year, you can subtract a larger amount from your taxable income due to the depreciation of property value. Addressing Potential Concerns Property Tax Implications: When you sell your home, it is often reassessed at its current market value, which could lead to higher property taxes. However, the tax savings and increased depreciation often outweigh these additional costs. Loss of Homestead Exemption: If you're concerned about losing the homestead exemption by selling your home, it’s important to note that this exemption would also be lost if the property is simply converted into a rental without a sale. Therefore, the loss of the exemption does not specifically disadvantage this strategy over others. Legitimacy of the Related-Party Transaction: Although the IRS scrutinizes transactions between related parties, selling your property to your S corporation is lawful. While profits from such a sale are treated as ordinary income, using the home-sale exclusion eliminates federal taxes on these profits. Steps to Implement S Corporation Setup: If not already established, forming an S corporation to own the rental property is advisable, enhancing flexibility and potential benefits. Fair Market Value Assessment: Obtaining an appraisal to determine the fair market value is essential for setting a legitimate transaction price. Professional Legal and Title Services: Hiring professionals to manage the title transfer and legal documentation ensures that the transaction adheres to regulations and mimics an arm's-length sale. Record Keeping: Maintaining thorough records and documentation is crucial to support the legitimacy of the transaction, especially if inspected by the IRS. ConclusionTransitioning your home into a rental property via sale to an S corporation presents significant financial benefits, particularly in tax savings and cash flow improvement, despite potential increases in property taxes and loss of homestead exemptions.

Key 2024 Changes for Real Estate Professionals: FinCEN, NIIT, and Rental Property Tax Insights

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Wed, 13 Dec 2023 12:59:14 -0800

Key 2024 Changes for Real Estate Professionals: FinCEN, NIIT, and Rental Property Tax InsightsBy Allan J RolnickAttention, real estate professionals! As we step into 2024, it's crucial to be aware of the new regulations and tax changes that could impact your business. The Corporate Transparency Act (CTA) and the Net Investment Income Tax (NIIT) are set to bring significant shifts. Here’s a rundown of what you need to know.FinCEN's New Reporting RequirementsStarting January 1, 2024, the CTA mandates new filing requirements for corporations, LLCs, and limited partnerships, including many real estate businesses. Non-exempt entities must file a Beneficial Owner Information (BOI) report with FinCEN by December 31, 2024. This report requires details about the beneficial owners of your business, which includes most individuals with significant ownership or control.FinCEN's new Beneficial Ownership Secure System (BOSS) will use this data to combat financial crimes. While this information isn’t public, keeping it updated is crucial to avoid penalties.Exemptions to NoteLarger businesses with over 20 employees and $5 million in revenue, as well as certain regulated sectors like banks and non-profits, are exempt from the CTA. Single-member LLCs are included, but sole proprietors and general partnerships typically are not.Tackling the Net Investment Income TaxReal estate investors should pay close attention to the NIIT. This 3.8% tax may apply if your modified adjusted gross income exceeds certain thresholds. It’s applicable to various investment incomes, including net rental income. To manage this, consider strategies like investing in tax-exempt bonds, donating appreciated assets, or utilizing real estate-focused tax deferrals.Maximizing Deductions for Rental Property Start-UpsFor those diving into rental properties, understanding start-up expenses is vital. Costs incurred before you start renting out a property, such as advertising, office expenses, and maintenance, can be deductible. However, the purchase price of the property itself isn't a start-up expense but should be depreciated once the rental business begins.Remember, the IRS views your rental business as limited to its geographic area. So, expanding into a new location could count as starting a new rental venture for tax purposes.ConclusionAs a real estate professional, staying ahead of these changes is key to maintaining a compliant and profitable business. Make sure to consult with a tax advisor to tailor these strategies to your specific situation. Let’s navigate these changes together and make 2024 a successful year!

Fortune Teller Steals a Fortune Seals Her Future Behind Bars!

Allan Rolnick, Small Business Tax Strategist (TriState Tax Resolution LLC) — Sun, 01 Jan 2023 14:53:10 -0800

A fortune teller and her accomplice were sentenced to 30 and 38 months in prison for defrauding a woman out of more than three million dollars. Samantha Stevens and Michael Guzman were found guilty of fortune-telling fraud and money laundering. Stevens met the victim in 2012 and claimed to be a psychic. She told the victim that a curse had been placed on her family, and she needed large sums of money to conduct cleansing rituals, all of which would free her family from the curse. Failure to provide Stevens with cash would harm the victim and her family. You can’t make this stuff up! Stevens and Guzman spent the victim’s money on cars, property, and casino gambling. The relationship between Stevens and the victim lasted for more than three years until the victim ran out of money, and Stevens cut off all communication. It was then that the victim reached out to law enforcement. In court, Stevens claimed that the ceremonies she performed were part of her religion, and the victim got exactly what she bargained for. In addition, on to prison, senpreciselylythe defendants must pay $3.198 million in restitution to the victim.