Posted in Tax Law & IRS Defense

When your tax return does not match data reported to the IRS from third parties, a letter called an IRS Notice CP2000 may be sent to you. It is not a formal audit notification, but it can quickly turn into a deficiency notice if not addressed. CP2000 Notices contain:

• The amounts you reported on your original or processed amended return;
• The amounts reported to the IRS by the payer or 3^rd parties;
• The payer’s name, ID number, the type of document issued (W-2, 1098, 1099), and the tax identification number of the person to whom the document was issued;
• The proposed changes to your income, tax, credits, or payments; and
• A Response form, payment voucher, and an envelope.

Posted in Tax Law & IRS Defense

The CARES Act, enacted by Congress previously this year, includes a special $300 charitable tax deduction, even if you do not itemize your deductions on your taxes. The purpose of this deduction is to help charities that may be struggling due to the COVID-19 pandemic. This new and temporary deduction is only available to taxpayers who make a cash contribution directly to a charity and before the end of the 2020 year.

Posted in Business & Corporate Law,Tax Law & IRS Defense

Closing a business can be a difficult and challenging task. First, before you close your business, find out if tax relief, your local county, or the CARES Act legislation can help you stay open. Also, be sure to consult with your professional team such as an attorney or accountant.

There are typical actions that are taken when closing a business. This blog post focuses on tax responsibilities with the IRS and FL Department of Revenue. It does not address non-tax obligations such as those associated with the vendors, contracts, or the FL Division of Corporations.

Posted in Business & Corporate Law,Tax Law & IRS Defense

On August 8, 2020, the President issued a Memorandum entitled Deferring Payroll Tax Obligation in light of the Ongoing COVID-19 Disaster. The Memorandum authorizes the Secretary of the Treasury to defer certain payroll tax obligations. The purpose of the Memorandum is to produce a targeted action that “will put money directly in the pockets of American workers and generate additional incentives for work and employment.”

Posted in Tax Law & IRS Defense

Now that this year’s Tax day has passed, you may have discovered that you owe more on your tax return then you can afford to pay. Here are some tax resolutions and tips to get your IRS debt resolved before it’s too late:   

1. Installment Agreements

Individuals who owe $50,000 or less in income tax and businesses that owe $25,000 or less in payroll tax may qualify for an Online Payment Agreement. You can set up the payment for any amount you can afford as long as the debt is paid in full within 72 months (6 years). You can also modify installment agreements through the program as well. 

Posted in Real Estate Law,Tax Law & IRS Defense

As most Florida homeowners know, the Florida Constitution provides for a valuable homestead tax exemption. In general, to qualify for this exemption under Section 196.031 of the Florida Statues, you must have legal or beneficial title to your home and in good faith make the home your “permanent residence” as of January 1^st.  Determining whether you make the home your “permanent residence” can be complicated for those who have multiple homes or sometimes rent the home on occasion.

Posted in Business & Corporate Law

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act was just passed by Congress.  The CARES Act totaling $2 trillion provides for individuals, families, governments, large corporations, and small businesses.  As to small businesses, below are some important links to Resources to help.  The first link is a guide by the U.S. Senate Committee on Small Business & Entrepreneurship, which outlines the various aspects of the CARES Act that apply to small businesses.  The second and third links are to the Treasury Department and SBA, which provides important updates on the CARES Act.

Posted in Tax Law & IRS Defense

Calendaring important IRS and tax authority deadlines can save you a lot of headaches at tax time.  To avoid paying penalties and other tax consequences, keep a calendar and plan for tax deadlines with your accountant, attorney, and other members of your professional team.  The below items are a few examples of important tax deadlines: