Ornelas & Ornelas

Starting this Veteran’s Day on November 11, the Department of the Interior has made it possible for anyone who’s worked in the US Armed Forces, including the National Guard and Reserves, to visit national parks for free. The department currently waives fees for active-duty military service members, so now former military will also have lifetime free access.

The work of a business owner is about planning, focus and execution (and later ... harvesting) vs. chasing the fad of the week, getting distracted and wasting time -- time you can't ever get back. How many times did you look at social media today to gawk at political train wrecks? How much of your headspace is currently taken up with "pressing" client/staff questions? How many rabbits can you chase at one time? Now, more than ever: Plan, focus, execute and harvest.

Tax on Cryptocurrency: 2020 Tax Code Changes for Greater Sacramento Taxpayers https://bit.ly/35ZqkSY

Regardless of what happens this week, we must all somehow move forward together and now is when the real work begins. While the nation's eyes are fixated on political things, we're spending our days working hard on behalf of our clients, talking through tax payment plan options, debt management strategies, business deduction questions, and more. Because both Republicans and Democrats deserve amazing tax resolution service. Simply put, we're here for you, no matter what's happening.

"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."

Jim Ornelas's Perspective On Proposed New Tax Policies https://bit.ly/3mGd5xf

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."

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.

Big PPP Loan Forgiveness News For Greater Sacramento Businesses https://bit.ly/37Fojhm