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Responding to a CP2000 Underreported Income Notice from the IRS

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January 15th, 2021

Posted in IRS & Tax Information

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 3rd 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.

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2020 Special Tax Deductions for Cash Donations to Charities

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December 18th, 2020

Posted in IRS & Tax Information

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.


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What is the Business Judgment Rule and How Does it Protect the Board of Directors of a Community Association?

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November 20th, 2020

Posted in Condominium & Homeowner Association Law

A community association’s board of directors is often tasked with making difficult and sometimes controversial decisions regarding community issues, such as covenant enforcement, collection action against delinquent owners, or larger issues with neighboring associations or governmental entities, among other issues. The gravity of these critical decisions can be stressful for board members and create questions regarding their own exposure to liability. A common question and concern from community association directors in these situations is, “Can I be held personally responsible for my actions as a director?”


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Closing a Business Checklist from a Tax Perspective

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October 16th, 2020

Posted in Business Law,IRS & Tax Information

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.


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Employee Payroll Tax Deferral

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September 18th, 2020

Posted in IRS & Tax Information

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.”


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Bankruptcy Issues for Community Associations

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August 14th, 2020

Posted in Condominium & Homeowner Association Law

The purpose of bankruptcy laws is to provide an opportunity for a fresh start to honest but unfortunate individuals (or debtors in the bankruptcy context) and to allow for the equal treatment of creditors who may be owed money.  The successful completion of a bankruptcy plan generally entitles the debtor to a discharge of certain debts.  The discharge of a debt prevents creditors from later attempting to collect the discharged debt.  Additionally, 11 U.S.C §362(a) imposes an automatic stay on any collection activity against the debtor or their assets.  The automatic stay begins immediately upon the filing of a bankruptcy petition and acts as a temporary injunction preventing collection activity by creditors.  Generally, the automatic stay will remain in place during the life of the bankruptcy proceedings unless the creditor obtains a court order granting relief from the automatic stay.


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What To Do If You Owe the IRS and Can’t Pay

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July 23rd, 2020

Posted in IRS & Tax Information

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. 


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Your Permanent Residence for the Homestead Tax Exemption

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June 12th, 2020

Posted in IRS & Tax Information,Real Estate Law

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 1st.  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.


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