The Lee Accountancy Group

"The future of this republic is in the hands of the American voter." - Dwight D. Eisenhower This is true everyday, but especially important on this day in 2020. No matter what divides us and no matter who wins today, we are all American.

The standard deduction is increasing in 2021, and new tax brackets and tax rates have been released. "Note: These rates remain in place no matter what happens in November 2020. For these rates to change, Congress would have to vote to change the tax rates."

Taxpayers collectively spend six billion hours annually -- or 8,758 lifetimes -- trying to comply with the tax code. Fortunately, YOU don't have to be the one doing all the heavy lifting. We are on your side.

Save ALL of your tax returns. After you file, save the paper and/or electronic copies with the rest of that year's financial documents for at least 7 years. If the IRS suspects you underreported your gross income by 25% or more, they have up to six years to challenge your return. And because we can all file for an extension at the October 15 deadline, you must keep your records for at least seven years. Regardless of those rules, though, if the IRS suspects you filed a fraudulent return, no statute of limitations applies. Because the IRS is run and organized by fallible people (with all of their attendant biases, emotions, etc.), we suggest keeping your tax returns and documents forever.

Good news? "The US economy added 1.37 million jobs in August ... the fourth consecutive month of job growth. Additionally, the US unemployment rate in August fell to 8.4%. This mark was down from 10.2% in July and better than April's historically high 14.7% unemployment rate that happened to be the highest on record since the Great Depression. Still, the number of permanent job losses increased by 534,000 to 3.4 million, inspiring more Americans to pursue their own start-up ventures."

You must save all the financial documentation used to create your tax returns, in order to defend yourself in the case of an audit. The IRS is one of the few courts where failure to produce proof of your claims results in the assumption that you are guilty of tax fraud. This is part of the reason why you ALWAYS want a professional on your side in these matters. Would you go to court without an advocate? Would you go before a court with a software-generated defense?... "Your honor, here is my lawyer, Siri."

Effective Financial Documentation Strategies for Oakland Taxpayers https://bit.ly/324mZB5

The IRS has apparently caught up on processing their backlogged mail that stacked up during COVID closures. Or, good enough, they say. They are now resuming the mailings of tax-due notices to taxpayers with outstanding tax bills. If you receive one of these notices, give us a call immediately.

Keeping personal and business separate is extremely important for your taxes. While there is some room for dual purpose expenses, far-reaching claims are easy pickings for IRS auditors.

"Hope someone can use some of these baseballs in the batting cages. I found them cleaning my garage. I pitched them to my son and grandson for countless rounds. My son is now 46 y/o and my grandson is 23 y/o. I am 72 and what I won't give to pitch a couple of buckets to them. They have both moved away. If you are a father cherish these times. You won't believe how quickly they will be gone. God bless P.S. Give them a hug and tell them you love them every chance you get."

Nine Crucial Questions To Prepare Oakland Taxpayers For Their 2020 Taxes https://bit.ly/34im6pR

A new QR code feature aims to help you access your taxpayer account info easier when receiving an overdue tax notice from the IRS. If you just need help setting up logistics to pay your bill, this will help you. But if you do not agree with their numbers or you can't pay, you will still want professional assistance.

There's lots of tax talk in this election season, as in every other, as both candidates are making promises about their tax policies. The BEST advice we can give about what to do for your individual and business tax plan right now is: wait and see. If new tax legislation is passed in 2021, it probably won't be effective until 2022. Congress very rarely makes tax changes that are retroactive. So ... wait and see. Then, we will listen together to see what whichever President we have says about their tax plans ... and react accordingly.