Rod's Blog

The Tax Cuts and Jobs Act created hundreds of changes to the U.S. tax code and will affect every taxpayer in America. The changes range from eliminating or lowering exemptions and special tax credits to increasing the standard deduction. The new tax law also re-did the tax brackets and changed the tax rates for some people and businesses. One of the changes most people don’t know about is the 20% Qualified Business Income Deduction. This is a provision meant to benefit businesses with pass through income and is effective from 2018 until 2025.

It looks like the IRS will have a new commissioner. The Senate confirmed Charles Rettig last week as the new commissioner. The Senate confirmed the Beverly Hills tax attorney by vote of 64-33. Rettig will be the first commissioner to come from a tax background and was considered qualified for the job by both parties.  Rettig has a tough road ahead of him as the IRS has been hit with several budget cuts from over the years. One of Rettig’s big tasks will be writing the new rules to implement the next tax laws, along with pinpointing the way certain documents will look, and carefully deciding how overseas corporate revenue will be taxed.

Every year we are able to help hundreds of people settle their tax debt issues and move towards financial freedom. Each month we like to feature some of the hardest cases we deal with. This month we had a client who hadn't filed taxes returns in years, a business owner who had to settle both his personal and business tax liability and a taxpayer who was wrongly levied. 

Do you owe more in taxes this year than you anticipated? If you are unable to pay your balance in full by the tax deadline, it can be a very stressful and scary feeling. You wonder if the IRS will seize your bank account or your home. The good news is that there are options out there for you! The IRS has different payment plans and options for taxpayers depending on your income and your financial situation. The important thing is to be proactive and trying to find a payment arrangement with the IRS as soon as possible. The IRS can penalize you if you do not pay your taxes by issuing a failure to pay penalty.

When people think of big tax breaks on a tax return for individuals, they typically think of the credits for having children or dependents or the deduction home owners receive for mortgage interest paid over the course of the year. If you don’t have a child or dependent and still are working to buy your first home, you would not qualify for these tax breaks. But not to worry! There are other tax breaks out there that you might qualify for!

A question we often get from clients is what receipts should they be saving throughout the year, so they can write off those expenses off on their taxes. There are lots of ways to try and reduce the amount of tax due on your return at the end of the year, one of them being through deducting expenses you have throughout the year. It’s important to remember that not all of your expenses are deductible on your tax return. Knowing which receipts to save and which to throw away can help you maximize your tax refund or lower your tax liability and minimize the amount of paper you must keep for your tax return each year. A good first place to start looking is at bills you’ve already paid and purchases you have already made this year.

If you’re like most taxpayers, chances are you haven’t read The Tax Cuts and Jobs Act, which is understandable as the tax reform legislation is over 500 pages long and can be confusing and hard to understand for the average taxpayer. The good news is we’ve read through the new tax law and we can help you understand some of the major changes that will affect you and your business! Here is part two of our series of going through the different tax law changes and letting you know what the changes are and how they will affect you! You can also catch part one of the tax law changes here!

So you filed your tax return and you later realize that you made a mistake!! If you made a mistake on your tax return after you filed it, the IRS will allow you to prepare and file an amended return to fix the errors in the originally filed return. A lot of taxpayers tend to choose the wrong filing status or notice mathematical errors on their returns. It’s important that if you do realize you made a mistake on your federal tax return, that you file an amended return as soon as possible.

If you’re like most taxpayers, chances are you haven’t read The Tax Cuts and Jobs Act, which is understandable as the tax reform legislation is over 500 pages long and can be confusing and hard to understand for the average taxpayer. The good news is we’ve read through the new tax law and we can help you understand some of the major changes that will affect you and your business! Here is part one of our series of going through the different tax law changes and letting you know what the changes are and how they will affect you!

n important tax deadline is coming up and missing it could cause you to collect some IRS penalties. 3rd quarter estimated tax payments (ETP) are due Monday, September 17th. Estimated tax payments are a method of paying the tax on income that is not subject to withholding tax. This can include income from self-employment, business earnings, interest, rent, or other sources. The IRS requires these payments to be made quarterly. If you underpay your estimated tax payments, you will end up having to write a bigger check to the IRS when you file your tax return. If you overpay, you will receive the excess amount as a tax refund once you file. If this is your first time making an estimated tax payment or you aren’t sure if this applies to you, the process is simple.