San Diego Tax Center

Even though the July opt-out date for the first payment of the advanced CTC has come and gone, you can still put the kibosh on the August 13th payment. However, you've got to do it at least 3 days before the first Thursday in August (aka August 2nd). And... if you somehow get lost in the busy in and out of daily life and forget to unenroll for August's payment, you can always unenroll before the next payment sneaks up on you. For more info, drop in on the IRS's Topic J page:

While we pride ourselves on serving our local community with excellence, we are available to help with your tax resolution issues no matter where you live. Of course, if you're local, we'd love to sit down with you and get to know you. However, if you aren't in our area, we are still committed to providing PERSONAL, excellent service. We will get to know your story, and give you our best, so that you can be free of the burden of tax debt.

If your business is hiring young people on summer break as seasonal employees, remember that you must report all wages you pay them. Just because they are young, or it's just a short "side job," doesn't mean you aren't responsible to let the IRS know that you hired them. Not doing so can result in fees and trouble for you.

Every year, millions of new businesses are started across the country. Yes, millions. Unfortunately, a high percentage of them will be out of business within five years. Most businesses close due to issues with very controllable factors, such as tax non-compliance and the problems that come with it. Our job is to help you control those controllable factors ... and stay in business. Reach out for the help you need.

The IRS has begun putting together its 2021 Dirty Dozen tax scams list. The list includes: - pandemic-related scams - personal info cons... - ruses focusing on unsuspecting victims - schemes that persuade taxpayers into unscrupulous actions More info to come, but let this remind us to keep an eye out for these schemes and scams.

A federal tax lien works just like any other lien. Basically, it’s a claim against your property. A tax lien takes a higher priority over some other kinds of liens but will always stay below other lien types. For example, a federal tax lien will not jump in front of a mortgage or a local property tax lien. When a federal tax lien exists, it covers ALL of your property. Where the mortgage on your house is only secured by the house itself, rather than your car, tools, collections, paycheck, etc., a federal tax lien is secured by everything you own. This means the clothes on your back, the money in your checking account, your retirement accounts, even your paycheck. Yep, that’s correct, a federal tax lien provides the government with a claim over your paycheck. That doesn’t mean they will take it. It just means they can.

The past year and a half has been stressful for everybody. The thing is though, these things happen. Quite regularly. Maybe not global pandemics, but disasters in general. So, as people in your corner who might be the only ones asking you these questions -- What happens to you or your business if the building next door catches on fire? Are you prepared for the next hurricane, tornado, or hail storm?... Every family and business needs to prepare for these eventualities. Do you have a plan? It's something to think about...

With any tax debt comes an awkward and unwelcome house guest: A federal tax lien. This tax lien exists as a matter of federal law, even if you only owe the IRS one dollar. Usually, there’s no public record of a federal tax lien. Unfortunately, under certain conditions, especially if you owe more than $10,000, the IRS may file a written notice with the county clerk about the tax lien, putting it on public record for the entire world to see (something most anyone wants to avoid...). In some circumstances, it may be possible to obtain the removal of that public notice. In order to achieve this, we must demonstrate two things: 1. The lien is creating a financial hardship for you. 2. Removing the lien will help the IRS get paid. Basically, we aim to prove that the mere existence of that public notice could cause an income loss or other financial issue for you. If you find yourself in this type of situation, reach out and let's see what we can do to put you in a better position.

An Identity Protection Tip: With each financial institution you do business with, be sure to sign up for any account alert options they offer. For example, most brokerage accounts have an option to send you an email and a text message whenever money is about to be transferred out of your account. You definitely want that turned on. Same goes with your credit cards. Set alerts for even small transaction amounts, as fraudsters often test a stolen credit card with tiny dollar amounts to see if the card still works.

The upcoming Child Tax Credit payments are NOT like the stimulus checks. They are advance payments of a credit you may be eligible for on your 2021 taxes. If your income has increased or you think you will owe on your taxes next year, you may want to opt out or you may need to pay it back.

Let’s talk about something good coming out of the dumpster fire of last year: refunds on unemployment compensation. Thanks to ARPA, if you received unemployment compensation, the first $10,200 of those unemployment benefits are being retroactively made tax-free. That means a possible refund could be headed your way.

A lot of families (especially those living paycheck to paycheck) have been looking forward to those monthly advanced payments of the increased Child Tax Credit (up to $300 per child) set to roll out in July. However... if you got a new, higher-paying job this year or received a raise, you might want to consider opting out. Why? Unlike the "free money" stimulus payments, receiving too high of a CTC payment could mean that parents end up having to pay back those payments on next year's taxes.

If you're eagerly spying a trip to Europe this summer after being shut-in for most of last year, but you're also seriously delinquent in your taxes, you might want to hold off on booking that flight. Why? Well, the IRS can steer the State department toward restricting your passport use when you've got big-time unpaid taxes. Want to get your international travel plans back on track? ... Reach out to us about getting that tax debt paid. See more

If you have an outstanding debt with the IRS, by law, the IRS must "consider" settling your debt. We're talking here about the Offer in Compromise (OIC), and they are indeed authorized to settle for less than the full amount that you owe. In fact, they always have to listen to an offer. But be careful -- not everyone qualifies for an offer in compromise. The IRS has very rigid guidelines for examining an offer in compromise. The IRS will look at your household income, living... expenses and asset values, and determine if they can collect the FULL amount owed from you. In most cases, to accept a compromise, the IRS has to be convinced that they will never collect the full amount owed from you. If so, then they can agree to settle for a lower amount, representing what can be paid and recovered. Usually, you need help for this process. That's where we come in.

The rise of self-employment and the side hustle is an exciting trend for the US economy. If this is you, there are important deductions you'll want to make use of to make your venture as profitable as possible. If you file your taxes with us, we're always looking out for these money-savers. Let us know if you have questions.

In the realm of preparing your tax return, I urge you ... do NOT fall prey to the thinking that a software program or talking heads on a floating desk can suffice to enable you to preserve your resources or properly leverage the multiplicity of credits, loopholes and deductions available. Give yourself the gift of financial peace of mind during tax season, and do it with someone who knows how to do it right.

Lowered gas and insurance costs in 2020 led the IRS to reduce the mileage deduction rates for 2021. This is now what you can deduct for driving for business purposes this year: - 56 cents/mile for business (down from 57.5) - 16 cents/mile for medical or moving (down from 17) - 14 cents/mile for charitable purposes... But with gas prices seemingly on the way up again in 2021, we'll probably see mileage rates affected accordingly next year.

Six Options For San Diego Small Business Aid And Tax Savings https://bit.ly/3rtRwCl

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."

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.

Organizing your financial world can feel like a daunting task, but some SIMPLE steps will go a long way. Watch our video -- doesn't this seem really doable?

How To Approach Bigger Business Players In San Diego or Your Niche https://bit.ly/3kcTrrY

Well, with yesterday's extended tax deadline behind us, one crazy and wild and completely unprecedented tax season comes to a close. Thank you for entrusting us with something as close to you as your finances -- we know how important each dollar is to each of you, and we're committed to helping you keep as many of them as you legally can. (And now, it's time for a very long nap this weekend, before we gear up for next year.)

The day has come. All 2019 returns that were given an extension to file are due to be submitted today, which means our most recent marathon is coming to an end. Next tax season is now not so very far away (along with the tax ramifications of what THIS tax season delivered). Are you ready for that? You will be ... with our help.

We've been telling you about some tax professional rumors circulating about "automatic forgiveness" for PPP loans under $150K. Well, they did it! Except it is for even smaller loans (under $50K). And it's not "automatic", but it is very, very easy. Here is the simplified application if your loan falls in that category. https://bit.ly/318OOYh

Here are some questions to consider for your 2020 taxes that will set you up for long-term success. We're here to help you walk through these answers and how to affect your tax status in a positive way. 1) Have you had a significant change in your wage income this year? 2) Have you taken capital gains or losses this year? Are you planning to? 3) Did you start or sell a business this year?... 4) Did you purchase real estate? 5) Did you make your full contributions to retirement accounts? 6) Have you considered a Roth IRA? 7) Did you withdraw from retirement accounts, and for what purpose? See more

Extension deadline is on THURSDAY, folks. Filing a tax return late (without reasonable cause) results in a 5% late FILING penalty (on whatever it is that you owe -- and the IRS will figure it for you if you don't), and an additional 5% for every month you wait to file. PLUS there is an additional 0.5% to 1% late PAYMENT penalty (per month) on whatever it is you owe. NOTE: this is ON TOP of late filing penalties. Then (yikes), interest accrues on both the late tax filing penal...ties AND the late payment penalties. That's a lot of penalty. And at least the first one is completely avoidable. If you can't pay the tax due on October 15, still file ... and talk to us about helping you set up an installment agreement or working out an offer in compromise to cover what you owe.

5 Business Mistakes That Can Be Fatal by Daniel Yowell https://bit.ly/2GKRdBw

Another PPP loan update for businesses: If your PPP loan was less than $50K, a couple of time-consuming requirements have been removed from the forgiveness application, making the process *a little bit* less complicated. Automatic forgiveness for certain loans, while still being discussed, is not yet available.