I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. Tax planning is an essential aspect of financial management for real estate agents. As (mostly) self-employed individuals, real estate agents have unique tax obligations and opportunities that require careful consideration. By proactively planning their taxes, real estate agents can maximize their deductions and minimize their tax liabilities, ultimately improving their overall financial health and staying off the IRS radar.One crucial aspect of tax planning for real estate agents is understanding deductible business expenses. Real estate agents can deduct various expenses related to their business operations, such as advertising and marketing costs, office rent, professiona... 09/12/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. One of the reasons the tax resolution industry exists is because many people don't take into account the importance of proper tax planning to keep them out of my world. We work with our clients to develop a proper tax plan after the "mess" is cleaned up.Tax planning is the process of managing your finances to minimize your tax liability. It is an important component of any financial plan, and can help you save money each year.There are many benefits to tax planning, including: Reduce your tax liability. By taking advantage of tax deductions, credits, and exemptions, you can reduce the amount of taxes you owe. Increase your cash flow. When you reduce your tax liability, you f... 09/08/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. As a business owner, it is essential to understand payroll taxes and their implications. Payroll taxes are the taxes that an employer must withhold from their employees' wages and pay to the government on their behalf. This includes Federal Income Tax, Medicare Tax, Social Security Tax, and State and Local Taxes (if applicable).It is essential to calculate payroll taxes correctly, as failure to do so can lead to severe financial penalties. Here is a breakdown of the most common payroll taxes you need to understand as a business owner:Federal Income Tax: This is the tax that the employer withholds from the employee's paycheck and pays to the government. It is calculated based... 09/08/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. If you are having issues with back payroll taxes, it is important to consider seeking the assistance of a tax relief firm. These firms specialize in helping businesses and individuals who are in trouble with the IRS, and can offer a wide range of services to help you resolve your tax issues.One of the most important factors to consider when deciding whether to call a tax relief firm is the severity of your situation. If you owe a significant amount of money in back payroll taxes, or if you have been contacted by the IRS about the issue, it is a good idea to seek professional assistance. A tax relief firm can help you negotiate with the IRS, and may be able to reduce the amou... 08/17/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. Back payroll tax problems can cause real headaches for any business owner. They can cost your business time, resources, and money. Understanding how these issues arise can help you take appropriate action to avoid them. Here are some common reasons why back payroll tax problems start. Incorrect Employee ClassificationOne common way that businesses run into back payroll tax problems is by improperly classifying employees as independent contractors. This mistake can trigger substantial tax liabilities if the IRS determines that the worker should have been classified as an employee. Penalties and interest may also come into play. Late Payroll Tax DepositsWhen businesses delay m... 08/15/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. Real estate investing offers numerous financial rewards, but navigating the tax implications requires strategic, well thought out planning. Here are some tips to help you optimize your tax position as a real estate investor.First, understand the importance of depreciation. While your property appreciates over time, you can write off its depreciation as an expense. This non-cash tax deduction can reduces your taxable income significantly.Second, consider structuring your entity/investment as a limited liability company (LLC) or a similar entity. This structure offers you greater flexibility when it comes to distributing profits and losses, potentially reducing your overall ta... 08/02/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. Receiving a notice of lien from the Internal Revenue Service (IRS) can be a daunting experience. A tax lien can have serious consequences for your financial standing and creditworthiness. However, there are steps you can take to navigate this situation and potentially have the IRS withdraw its notice of lien. Let's explore the key actions you need to take. Resolve the Underlying Tax Debt:The first and most crucial step is to address the underlying tax debt that led to the notice of lien. Contact the IRS to discuss your options, such as setting up a payment plan, negotiating an offer in compromise, or requesting an abatement of penalties.   Request a Withdrawal of the Notice ... 07/31/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. The Trust Fund Recovery Penalty (TFRP) is a penalty assessed by the Internal Revenue Service (IRS) that can be imposed on responsible parties for unpaid federal payroll taxes. If a business is required to withhold payroll taxes from its employees' paychecks, but fails to do so or to make the required deposits, both the business and the responsible individuals can be held liable for the unpaid tax.The TFRP is assessed under Section 6672 of the Internal Revenue Code, and applies to both owners and key employees of a business who have the authority to make financial decisions, such as deciding which bills to pay. These individuals are considered to be "responsible parties" for ... 07/26/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. The Cohan rule is a legal principle that allows taxpayers to claim deductions for expenses that are not fully substantiated, as long as they can provide reasonable estimates and demonstrate the expenses were indeed incurred. This rule was established after the landmark Cohan v. Commissioner case all the way back in 1930, which set a precedent for the treatment of deductions when taxpayers lack complete records.The Cohan rule is particularly helpful for taxpayers who may have lost or misplaced receipts, or for those who engage in cash transactions that are difficult to track. It recognizes the practical difficulties of keeping perfect records and allows taxpayers to rely on e... 07/24/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States.  If you receive a final IRS notice, it is important to take immediate action to address the issue. Here are steps you can take:1. Read the notice carefully: Understand the reason for the notice, the deadline for response, and any actions required from your end.2. Gather necessary documents: Collect all relevant documents, such as tax returns, W-2 forms, and receipts, to support your case or to verify any discrepancies.3. Contact the IRS: If you have any questions or need clarification, call the phone number provided on the notice. Be prepared to provide your taxpayer identification number and have the notice handy for reference.4. Pay the amount owed: If the notice is regard... 07/20/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States.  Having an IRS installment agreement in place is a step in the right direction when it comes to resolving your tax debt. However, there may be instances where you find yourself unable to afford the agreed-upon payments. It is important to address this situation promptly to avoid any potential consequences.If you find yourself in a situation where you cannot afford to pay your IRS installment agreement, there are a few options you can consider: Contact the IRS: Reach out to the IRS as soon as possible to explain your financial situation. They may be willing to modify your existing agreement based on your current income and expenses. Be prepared to provide documentation to sup... 07/17/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. The Internal Revenue Service (IRS) Fresh Start Initiative is a set of policies and programs designed to help taxpayers who are having difficulty meeting their federal tax obligations. It includes several new programs, such as expanded eligibility for payment plans, tax lien reductions, and easier access to the Offer in Compromise program. The goal of the Fresh Start Initiative is to provide taxpayers with more flexibility and to make it easier for those who can’t pay their taxes to come into compliance. Under the Fresh Start Initiative, the IRS has increased the threshold for filing a streamlined installment agreement from $10,000 to $50,000. This means that taxpayers who ow... 07/12/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. The IRS Substitute for Return (SFR) is a program that the IRS uses when a taxpayer fails to file a return or owes taxes but fails to respond to IRS correspondence and other attempts to get them to comply. The SFR program allows the IRS to create a tax return for the taxpayer in the absence of them filing their own return. When the IRS creates a substitute return, they estimate taxes due based on the limited information they have. This estimate is usually higher than the actual tax liability and the penalties and interest increase the amount even further. Often under these circumstances, the taxpayer will not be aware of the tax debt until they receive a collection notice in ... 07/10/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. As a business owner, it is your responsibility to make sure that you are paying your payroll taxes on time and in full. Failure to do so can have serious consequences, including fines, penalties, and even jail time.If your business fails to pay payroll taxes, the IRS can take legal action to collect the money owed. Penalties and interest will continue to accrue on the outstanding amount until it is paid in full. However, if the IRS determines that the failure to pay is due to willful neglect or fraud, they may pursue criminal charges against you and your business.If found guilty of willful failure to pay payroll taxes, business owners can face significant fines and jail time... 07/07/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. Payroll tax issues can cause significant headaches for businesses, especially small ones that may not have the resources to stay compliant with the rules and regulations of the Internal Revenue Service (IRS). In this blog, we will discuss the causes of payroll tax issues and provide some solutions to help businesses overcome them.Causes of IRS Payroll Tax IssuesThe following are some of the causes of IRS payroll tax issues that businesses may encounter: Misclassification of employees - businesses may classify their workers as independent contractors instead of employees, which can result in penalties if it is determined that they should have been classified as employees. Lat... 07/06/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. Many taxpayers worry about the possibility of being audited by the IRS, but the likelihood of an audit is relatively low (at this point in time), although that is expected to increase with the additional hirings the IRS is making. Several factors can increase your chances of being audited, including: High Income: Taxpayers with high incomes are more likely to be audited than those with lower incomes.  Self-Employment: Self-employed individuals are more likely to be audited than those who are employed by a company, especially if you are Schedule C filer. In my experience, Schedule C landscapers, contractors and real estate agents fall into this category. S corporations have b... 05/03/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. An IRS partial pay installment agreement is a payment plan that allows taxpayers to pay off their tax debt in smaller, more manageable monthly payments. Unlike a traditional installment agreement, a partial pay installment agreement allows taxpayers to pay less than their full tax debt over a longer period of time.To qualify for a partial pay installment agreement, taxpayers must first submit a financial statement to the IRS, which outlines their income, expenses, and assets. The IRS will then review the financial statement and determine if the taxpayer is eligible for a partial pay installment agreement.If approved, taxpayers will be required to make monthly payments toward... 04/27/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. If you owe taxes to the IRS and are unable to pay, you may be concerned that they will seize your home and assets. While the IRS does have the power to seize property to satisfy a tax debt, it is important to note that this is not something that happens without warning.The IRS would generally only consider seizing a taxpayer's property as a last resort. Before taking such a drastic step, the IRS would typically send multiple written notices and give the taxpayer opportunities to make payment arrangements or dispute the debt in question.When the IRS does move forward with a seizure, it will be done in accordance with strict procedures and laws. They cannot simply take any pro... 04/24/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. If you find yourself in a position of owing back taxes to the IRS, you may be eligible for IRS tax debt relief through one of several methods. As with any debt, the sooner you act to remedy the situation the better, so understanding the available options is key. Generally speaking, the IRS will accept a payment plan for back taxes owed and may grant some type of penalty or interest abatement depending upon your financial situation. Though it may be burdensome to pay the debt back in this manner, it is a common form of IRS tax debt relief. Additionally, if you deep financial hardship, you may be able to negotiate an Offer in Compromise, which allows you to pay less than the f... 04/20/2023

I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. When you are filing your taxes, avoiding mistakes is essential. Even minor errors can cause big problems with the Internal Revenue Service (IRS). To prevent this from happening, there are several things that you can do to avoid common mistakes and potential issues with the IRS.First, it is important to double-check all of your information before submitting it to the IRS. Make sure all of your calculations are correct and that your deductions are valid. Take your time so that you don’t rush and make errors that could lead to additional problems.Also, make sure to properly use any tax software that you might be using. Many people make mistakes when using tax software, so it is... 04/10/2023