IRS Tax Tip 2017-05, January 30, 2017Inside This IssueThings to Remember When Choosing a Tax Preparer Taxpayers should choose their tax return preparer wisely – with good reason. Taxpayers are responsible for all the information on their income tax return. That’s true no matter who prepares the return. Here are ten tax tips to keep in mind: 1. Check the Preparer’s Qualifications. Use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with the qualifications that they prefer. The Directory is a searchable and sortable listing of preparers with a credentials or filing season qualifications. It includes the name, city, state and zip code of:
Attorneys, CPAs and enrolled agents can represent any client before the IRS in any situation. Annual Filing Season Program participants may represent clients in more limited situations. Non-credentialed preparers who do not participate in the Annual Filing Season Program may only represent clients before the IRS on returns they prepared and signed on or before December 31, 2015. For more information, check the Understanding Tax Return Preparer Credentials and Qualifications page. 2. Check the Preparer’s History. Ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. For CPAs, check with the State Board of Accountancy. For attorneys, check with the State Bar Association. For Enrolled Agents, go to IRS.gov and search for “verify enrolled agent status” or check the Directory. 3. Ask about Service Fees. Avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition. When inquiring about a preparer’s services and fees, don’t give them tax documents, Social Security numbers and other information. Some preparers have improperly used this information to file returns without the taxpayer’s permission. 4. Ask to E-file. Taxpayers should make sure their preparer offers IRS e-file. Paid preparers who do taxes for more than 10 clients generally must file electronically. The IRS has safely processed billions of e-filed tax returns. 5. Make Sure the Preparer is Available. Taxpayers may want to contact their preparer after this year’s April 18 due date. Avoid fly-by-night preparers. 6. Provide Records and Receipts. Good preparers will ask to see a taxpayer’s records and receipts. They’ll ask questions to figure the total income, tax deductions, credits, etc. Taxpayers should not use a preparer who will e-file their return using their last pay stub instead of a Form W-2. This is against IRS e-file rules. 7. Never Sign a Blank Return. Don’t use a tax preparer who asks a taxpayer to sign a blank tax form. 8. Review Before Signing. Before signing a tax return, review it. Ask questions if something is not clear. Taxpayers should feel comfortable with the accuracy of their return before they sign it. They should also make sure that their refund goes directly to them – not to the preparer’s bank account. Review the routing and bank account number on the completed return. 9. Ensure the Preparer Signs and Includes Their PTIN. All paid tax preparers must have a Preparer Tax Identification Number (PTIN). By law, paid preparers must sign returns and include their PTIN. 10. Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. Report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax preparer filed or changed their return without the taxpayer’s consent, they should file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. Taxpayers can get these forms on IRS.gov any time. Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return. Additional IRS Resources:
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Category: Tax Related
12 Tax Breaks for Middle Class Families
Taking advantage of tax breaks aimed at working families can significantly decrease your tax burden. Lowering your adjusted gross income (AGI) through eligible deductions is especially important when filing jointly if both spouses work and earn an income.
Check out these 12 tax breaks for middle class families.
1. Traditional IRA deduction, 401(k) or SEP contribution deduction
If you contributed money to a retirement account last year, you can deduct some of the money from your taxes when you file this year.
401(k)
If you contributed money to a 401(k) in 2016, those contributions are not included in your taxable income — so you don’t take a deduction when you file your return. For 2016, you could contribute $18,000 or $24,000 if you’re 50 or older by the end of the year.
Traditional IRA
Though you can’t get a tax deduction for a Roth IRA, you can for a traditional IRA. And the good news is, you have until the tax deadline of April 18, 2017, to contribute! Deduct all of your contributions up to the maximum $5,500 if you’re under 50, or $6,500 if you’re 50 or older.
SEP
If you’re self-employed or earn income from a side job, you could contribute up to 25% of your net income to a Simplified Employee Pension, or up to $53,000 for 2016. In addition, you can make 2016 contributions to a SEP anytime before April 18, 2017.
2. Saver’s tax credit
Even if you have a Roth IRA or are already saving in an employee-sponsored retirement plan, there is another tax credit you can receive called the Retirement Savings Contributions Credit.
This tax credit is available to people who are age 18 or older, not a full-time student and not claimed as a dependent on another person’s return. According to the IRS, “The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income,” and it can be used for your contributions to any of these retirement plans: Traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans.
3. Earned Income Tax Credit
According to the IRS, the following types of people qualify: If your Adjusted Gross Income (AGI) is less than $14,820 and you’re single, if you’re married filing jointly and your AGI is less than $20,330, or you have three or more kids, are married, and your AGI is no more than $53,267, you can qualify for this tax credit — which can be as much as $6,242!
If you want to know if you qualify, use this tool from the IRS to find out.
4. $1,000 child tax credit
This tax credit can reduce your tax bill by as much as $1,000 per child, but you have to meet 7 different requirements.
And just what are those requirements?
- The child must be under age 17 at the end of the tax year for which you’re filing.
- The child must be your own child or an adopted child, a stepchild, or a foster child placed with you by a court or authorized agency.
- The child cannot have provided half of his or her own financial support in the tax year.
- You must have claimed the child as a dependent.
- The child must be a U.S. citizen.
- The child must have lived with you for at least half the year for which you’re filing.
- Your modified adjusted gross income is above certain amounts: $55,000 for married couples filing separately; $75,000 for single, head of household, and qualifying widow or widower filers; and $110,000 for married couples filing jointly. The available child tax credit is reduced by $50 for each $1,000 of income above the limit.
5. Dependent care tax credit
If you are paying for child care expenses while you’re working, you could be in luck when it comes to taxes! Plus, you can claim this tax credit regardless of income.
With this credit, you can claim a child age 12 and under for the year the taxes will be filed, your spouse, if they are unable to care for themselves and lived with you at least half of the year, or another person who is claimed as a dependent by you and lived with you for at least half of the year.
The maximum amount of allowable care expenses is $3,000 for one child, or $6,000 for one or more children or people.
There are other requirements for this tax credit though, so be sure to consult the IRS’ website for all the details.
6. Mortgage interest deduction
If you own a home, interest paid on a mortgage is tax deductible if you itemize your deductions on your tax return.
According to the IRS, in most cases, you can deduct all of your home mortgage interest. This can include interest on a mortgage to buy your home, a second mortgage, or a line of credit to secure your home or home equity loan.
Bear in mind, mortgage interest is only deductible for a first or second home, not a third or fourth home. You can deduct mortgage interest up to $100,000, or $50,000 if you’re married and file separately.
7. American Opportunity Credit
Previously called the Hope scholarship credit, the American opportunity credit has been expanded and can be claimed through 2017.
For this tax credit, $2,500 of the cost of tuition, fees and course materials paid to a qualifying college or university during the taxable year can be can be credited. In addition, this credit can be claimed for expenses for the first four years of post-secondary education, amounting to a credit of $10,000!
According to the IRS, taxpayers will receive a tax credit based on 100% of the first $2,000, plus 25% of the next $2,000, paid during the taxable year for tuition, fees and course materials. But, you must have a modified adjusted gross income of $80,000 or less ($160,000 or less for joint filers) to claim this credit for an eligible student.
For more on this, visit the IRS’ website.
8. Lifetime Learning tax credit
The lifetime learning credit is an education credit of up to $2,000 for qualified education expenses paid for eligible students.
The great news is, there is no limit on the number of years this credit can be claimed. Since it is a credit, it reduces the tax you have to pay, versus a deduction, which reduces the amount of income subject to tax. But, if your credit is more than your tax, unfortunately the difference can’t be refunded.
Bear in mind that you cannot claim the American opportunity credit and the lifetime learning credit. You’d have to choose between one or the other.
9. Student loan interest tax credit
If your modified adjusted gross income (MAGI) is less than $80,000 ($160,000 if filing a joint return), you can deduct up to $2,500 in student loan interest. Plus, you can claim this deduction even if you don’t itemize deductions
10. Sales tax or state income tax deduction
From 2005 through 2014, the IRS has permited writing off state and local income tax or sales taxes when itemizing your deductions on your federal tax return. People who live in a state that does not require income taxes can benefit most from this deduction, but not always. If you made large purchases during the year, you might benefit from deducting sales tax on your tax return. But, keep in mind, you can’t deduct both.
11. Charitable contributions
If you want to give to charity, the IRS wants to encourage you to do so by reducing your taxable income if you give to a qualifying 501(c3) nonprofit organization.
As a general rule, you can deduct up to 50% of your adjusted gross income, thereby reducing your overall taxable income, but 20% and 30% limitations may apply in some cases. Donations made by December 31, of any calendar year are tax-deductible. See the section on charitable contributions on the IRS’ website for more information.
12. Loss on capital gains
According to the IRS, almost everything you own and use for personal or investment purposes is a capital asset, such as a home, household furnishings or stocks or bonds. If you sold any stock at a loss, you can deduct up to $3,000 against other income, and carry forward the excess to future years. But, there are several rules for understanding how to do this. Consult the IRS for more on capital gains.
Tax Year 2016 Tax Rates
The IRS just announced its inflation adjustments for next tax year.
The Internal Revenue Service announced new inflation-adjusted income brackets for the 2016 tax year.
The top tax rate of 39.6% now applies to single taxpayers earning more than $415,050 ($466,950 for married taxpayers filing jointly)—up from the 2015 thresholds of $413,200 and $464,850, respectively.
Here are the other major adjustments:
If you’re single…
| IF YOUR TAXABLE INCOME IS… | YOU OWE… |
| $0-$9,275 | 10% of your taxable income |
| $9,275-$37,650 | $927.50 + 15% of anything over $9,275 |
| $37,650-$91,150 | $5,183.75 + 25% of anything over $37,650 |
| $91,150-$190,150 | $18,558.75 + 28% of anything over $91,150 |
| $190,150-$413,350 | $46,278.75 + 33% of anything over $190,150 |
| $413,350-$415,050 | $119,934.75 + 35% of anything over $413,350 |
| $415,050 and higher | $120,529.75 + 39.6% of anything over $415,050 |
If you’re married filing jointly or are a surviving spouse…
| IF YOUR TAXABLE INCOME IS… | YOU OWE… |
| $0-$18,550 | 10% of your taxable income |
| $18,550-$75,300 | $1,855 + 15% of anything over $18,550 |
| $75,300-$151,900 | $10,367.50 + 25% of anything over $75,300 |
| $151,900-$231,450 | $29,517.50 + 28% of anything over $151,900 |
| $231,450-$413,350 | $51,791.50 + 33% of anything over $231,450 |
| $413,350-$466,950 | $111,818.50 + 35% of anything over $413,350 |
| $466,950 and higher | $130,578.50 + 39.6% of anything over $466,950 |
If you’re a head of household…
| IF YOUR TAXABLE INCOME IS… | YOU OWE… |
| $0-$13,250 | 10% of your taxable income |
| $13,250-$50,400 | $1,325 + 15% of anything over $13,250 |
| $50,400-$130,150 | $6,897.50 + 25% of anything over $50,400 |
| $130,150-$210,800 | $26,835 + 28% of anything over $130,150 |
| $210,800-$413,350 | $49,417 + 33% of anything over $210,800 |
| $413,350-$441,000 | $116,258.50 + 35% of anything over $413,350 |
| $441,000 and higher | $125,936 + 39.6% of anything over $441,000 |
Understand Your Taxpayer Bill of Rights
Understand Your Taxpayer Bill of Rights
Every taxpayer has a set of fundamental rights. The “Taxpayer Bill of Rights” takes the many existing rights in the tax code and groups them into 10 categories. You should know these rights when you interact with the IRS. Publication 1, Your Rights as a Taxpayer, highlights a list of your rights and the agency’s obligations to protect them. Here is a summary of the Taxpayer Bill of Rights:
- The Right to Be Informed. You have the right to know what is required to comply with the tax laws. You are entitled to clear explanations of the laws and IRS procedures on all tax forms, instructions, publications, notices and correspondence. You have the right to know about IRS decisions affecting your accounts and clear explanations of the outcomes.
- The Right to Quality Service. You have the right to receive prompt, courteous and professional assistance in your dealings with the IRS and the freedom to speak to a supervisor about inadequate service. Communications from the IRS should be clear and easy to understand.
- The Right to Pay No More Than the Correct Amount of Tax. You have the right to pay only the amount of tax legally due, including interest and penalties. You should also expect the IRS to apply all tax payments properly.
- The Right to Challenge the IRS’s Position and Be Heard. You have the right to object to formal IRS actions or proposed actions and provide justification with additional documentation. You should expect that the IRS will consider your timely objections and documentation promptly and fairly. If the IRS does not agree with your position, you should expect a response.
- The Right to Appeal an IRS Decision in an Independent Forum. You are entitled to a fair and impartial administrative appeal of most IRS decisions, including certain penalties. You have the right to receive a written response regarding a decision from the Office of Appeals. You generally have the right to take your case to court.
- The Right to Finality. You have the right to know the maximum amount of time you have to challenge an IRS position and the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. You have the right to know when the IRS concludes an audit.
- The Right to Privacy. You have the right to expect that any IRS inquiry, examination or enforcement action will comply with the law and be no more intrusive than necessary. You should expect such proceedings to respect all due process rights, including search and seizure protections. The IRS will provide, where applicable, a collection due process hearing.
- The Right to Confidentiality. You have the right to expect that your tax information will remain confidential. The IRS will not disclose information unless authorized by you or by law. You should expect the IRS to take appropriate action against employees, return preparers and others who wrongfully use or disclose your return information.
- The Right to Retain Representation. You have the right to retain an authorized representative of your choice to represent you in your dealings with the IRS. You have the right to seek assistance from a Low Income Taxpayer Clinic if you cannot afford representation.
- The Right to a Fair and Just Tax System. You have the right to expect fairness from the tax system. This includes considering all facts and circumstances that might affect your underlying liabilities, ability to pay or ability to provide information timely. You have the right to receive assistance from the Taxpayer Advocate Service if you are experiencing financial difficulty or if the IRS has not resolved your tax issues properly and timely through its normal channels.
The IRS will include Publication 1 when sending you a notice on a range of issues, such as an audit or collection matter. Publication 1 is available in English and Spanish. All IRS facilities will publicly display the rights for taxpayers.
Tax Breaks for the Military
Tax Breaks for the Military
If you are in the U. S. Armed Forces, there are special tax breaks for you. For example, some types of pay are not taxable. Certain rules apply to deductions or credits that you may be able to claim that can lower your tax. In some cases, you may get more time to file your tax return. You may also get more time to pay your income tax. Here are some tips to keep in mind:
- Deadline Extensions. Some members of the military, such as those who serve in a combat zone, can postpone some tax deadlines. If this applies to you, you can get automatic extensions of time to file your tax return and to pay your taxes.
- Combat Pay Exclusion. If you serve in a combat zone, your combat pay is partially or fully tax-free. If you serve in support of a combat zone, you may also qualify for this exclusion.
- Moving Expense Deduction. You may be able to deduct some of your unreimbursed moving costs on Form 3903. This normally applies if the move is due to a permanent change of station.
- Earned Income Tax Credit or EITC. If you get nontaxable combat pay, you may choose to include it in your taxable income. Including it may boost your EITC, meaning you may owe less tax and could get a larger refund. In 2015, the maximum credit for taxpayers was $6,242. The average amount of EITC claimed was more than $2,400. Figure it both ways and choose the option that best benefits you. You may want to use tax preparation software or consult a tax professional to guide you.
- Signing Joint Returns. Both spouses normally must sign a joint income tax return. If your spouse is absent due to certain military duty or conditions, you may be able to sign for your spouse. You may need a power of attorney to file a joint return. Your installation’s legal office may be able to help you.
- Reservists’ Travel Deduction. Reservists whose reserve-related duties take them more than 100 miles away from home can deduct their unreimbursed travel expenses on Form 2106, even if they do not itemize their deductions.
- Uniform Deduction. You can deduct the costs of certain uniforms that you can’t wear while off duty. This includes the costs of purchase and upkeep. You must reduce your deduction by any allowance you get for these costs.
- ROTC Allowances. Some amounts paid to ROTC students in advanced training are not taxable. This applies to allowances for education and subsistence. Active duty ROTC pay is taxable. For instance, pay for summer advanced camp is taxable.
- Civilian Life. If you leave the military and look for work, you may be able to deduct some job search expenses. You may be able to include the costs of travel, preparing a resume and job placement agency fees. Moving expenses may also qualify for a tax deduction.
Audit Red Flags
Hey Everybody. More helpful tips from your taxman.
See below. Another excellent reason why it pays to have a pro prepare your taxes. Tell your friends and co-workers who use Turbo Tax or H&R Block, etc. that it’s far better to use a professional like RH Tax Services. We treat your tax returns as if they were our own. I don’t want to get audited which means i don’t want you to get audited. There is no foolproof method to ensure a zero audit chance because the IRS conducts a percentage of random audits but you are way better off utilizing my services as i am careful not to exceed the sweet spots relating to deductions. And the good news is, if you do happen to get audited i help you fight it every step of the way. It’s part of the service you pay for. Looking forward to working with you again this year.
Had a great year last year and suddenly enjoyed a surge in income? You could have a target on your back for an IRS audit. While getting audited is no fun, you can survive! The key to remember is you need to have solid documentation to back up any claims you make about your overall financial picture, particularly your deductions.
Here are some red flags likely to attract increased IRS audit attention
1. You claim a home office deduction
You need to have a dedicated space in your home that is only used for business to take advantage of this deduction. Doing so lets you prorate some household expenses such as utility bills, homeowner’s association fees and more on a fractional basis. You have to figure out exactly how much square footage is dedicated to your business in y our home vs. how much square footage you have in your home at large. Of course, this area is also ripe for abuse! You’ll need to be able to prove the area you’re claiming is separate and exclusive for business use.
2. You give a lot of money to charity
The IRS knows what others who make similar income to you tend to give, and they will question you if you’re claiming too much. Again, the key is to have accurate and complete documentation to prove you’ve made the donation and to prove the value of the donation if it’s non-monetary. But even then, there’s something of a surprise factor because of how some donations play the car donation card. In general, one of the least scrutinized ways to make a donation is with good old fashioned pen and paper. As USA TODAY notes, “Gifts by check are hard to falsify.”
3. You deduct unreimbursed business expenses
Unreimbursed business expenses are only deductible beyond two percent of your adjusted gross income, and most workers already get reimbursed by their employers for such out-of-pocket expenses. But if you don’t get that reimbursement, things like dues, license fees, subscriptions to trade journals, tools and supplies and specialty uniforms are all legitimately deductible. The gray area here is when you get into deductions for non-allowables like commuting costs and everyday work clothes. Again, the IRS knows what is outside normal bounds based on your income and will question you if you’re too far out of the norm.
These additional audit red flags could trip you up too
- You make too much money. The IRS will target those with incomes above $200,000. You have a 1 in 37 chance of being audited.
- Not reporting taxable income. You must report all 1099s and W-2s, even if you believe them to be incorrect. (Deal with the discrepancies after filing.)
- Claiming day-trading losses on Schedule C.
- Claiming rental losses.
- Deducting business meals, travel and entertainment.
- Claiming 100% business use of a vehicle. Be careful, salespeople! To counter any possible IRS questions, consider keeping a paper log on the dashboard and writing down every mile for work, the date and what it was for. If you do want to claim all the cost for a business expense, be sure you have another vehicle too.
- Writing off a loss for a hobby.
- Taking an alimony deduction.
- Running a business where almost all money is in cash.
- Not reporting a foreign bank account.
- Engaging in currency transactions.
13 Genius Tax Deductions to Take Advantage of for 2016 and Beyond
This is a pretty cool list of only 13 “semi-unknown” genius tax deductions that i found on an accounting website today. They are touting them as “Genius” tax deductions. For those of you who have been a client of RH Tax Services for at least a day you are probably going to recognize at least 90% of them as questions i ask you on a yearly basis. Seems like we might be a bit ahead of the curve as we’ve been deducting these, and much more,, for the past 18 years. Enjoy and hope you’re having a great year.
13 Genius Tax Write-Offs You Need to Take Advantage Of
Thirteen smart entrepreneurs from YEC have saved a ton of money by getting deductibles for things they pay for regularly.
We’re talking books, parking fees and even event-specific clothing. Things you would never have thought to deduct from your taxes.
Scan this list to see what you can claim and how much you can save on taxes this year.
- Health Insurance Premiums
If you pay for your own health insurance, you can deduct the premiums from your adjusted gross income. This can really add up over a year and especially over several years. Of course, there are requirements that need to be met so be sure to talk with your accountant before taking any action. – Alex Miller, PosiRank LLC
- Education
Online courses, books, certifications, workshops, training and conferences can all be deductible for your business. I have a small education stipend set aside every year for me and my employees. This is a great way to increase your knowledge and a great perk for employees. – Vanessa Van Edwards, Science of People
- Travel Expenses
Mileage to and from meetings and business-related activities adds up — so do tolls, parking fees and gas. All of these can be documented easily if you are willing to take the time to do it. It might seem petty at first, but watch how much it adds up to over the course of a full year. The key is to stay up on it. Scan your receipts daily as soon as you get back to the office. – Jonathan Long, Market Domination Media
- Self-Employed 401K
While it’s technically not a tax write-off, contributing to a self-employed 401(K) plan can reduce your taxable income by up to $53,000. Contribution limits for 2015 allow for salary deferrals of up to $18,000 and profit sharing contributions of up to 25 percent of your compensation or an annual maximum of $53,000. These pre-tax contributions can significantly reduce your taxable income. – Brett Farmiloe,Markitors
- International Sales
If your value added is over 50 percent domestically, and you export $1M or more, you can set up an IC-DISC and save taxes on your exports. – Wei-Shin Lai, M.D., AcousticSheep LLC
- Association Membership Fees
Often, entrepreneurs forget that it is important to network with others in the same/similar industries. Industry and trade associations are important to network and stay abreast of latest trends. While most of them have membership fees, these fees can be used towards a write-off. It’s a win-win! – Tamara Nall, The Leading Niche
- Clothing
Any clothing that has to be purchased for a specific event or is uniquely required to accommodate a client can be written off. This includes company swag for a conference, a suite for a panel and a formal gown rental for an industry banquet. Any clothing expenditure that is needed to market your company, yourself or your client is a legitimate business expense. – Faithe Parker, Marbaloo Marketing
- Hospitality Expenses
It’s often the little things that people forget to write off, either out of laziness or because they think that it won’t add up to anything. Coffee for clients, buying the team dinner after a long day’s work — these little things add up. It’s not just the new computers and major business expenses that you have to worry about during tax time. It’s all the little pieces as well. – Matt Doyle, Excel Builders
- Philanthropy
I am a huge believer of giving back to the community — not only with money but time. In my eyes, what better way than giving money toward something beneficial to the community which also counts as a tax write-off? Even taking it a step further you can start your own philanthropy to offer other businesses the chance to donate and use it as a write-off. – Marc Devisse, Tri-Town Construction
- Technology
You can write off technology, including your cell phone plan, so long as you’re using it for business purposes. Also, the home office deduction is a nice one if you have a dedicated work space at home. –Brian David Crane, Caller Smart Inc.
- Cost of Tax Prep Fees
Hands down, failing to deduct the cost of tax preparation; this is money right out of your pocket! We see this on 90 percent of the returns we process. Businesses can deduct these fees on their corporate returns, and individuals can deduct the fees on Schedule A. Of course, they have to itemize on their 1040 for this to work. – Marjorie Adams, Fourlane
- Real Estate Ownership Deductions
Many entrepreneurs often overlook the benefits of owning their office/retail or commercial space versus renting them. If you’re looking to build a sustainable company that is going to be around for a while, then being an owner-operator might be for you. Taking a few hours to meet with a real estate tax professional never hurt anybody. – Mikhail Zabezhinsky, OceanTech
- Bonuses
This is true especially around the holiday season. Most of your employees have gone above and beyond for the company and for you. Why not reward your top-performing employees with a nice end of the year bonus check. This will in return lower the bottom line and soften your tax burden while simultaneously putting a huge smile on the face of your employees. I bet they will be roaring to hit the new year with a bang. – Engelo Rumora, Ohio Cashflow
Welcome to Tax Year 2015
Hello Everybody. I want to thank you for being a client of RH Tax Services. I look forward to continuing our relationship each year going forward. Tax year 2015 is upon us and we are prepared to hit it strong. Everything is the same as last year as far as booking appointments and pricing so rest assured that your returns will be prepared as if they were my own tax return. Thanks to you, last year was a huge success and solidifies my decision to build this business together. I am continuing as a full time tax guy this year and, hopefully, every year going forward so your returns will be my primary focus.
The referral program is still going strong and i hope it continues going into tax year 2015 and beyond. I refer to it as “Refer 3 and get yours Free” but it could also be titled “Everybody Wins”. It’s a great way to help out your friends, family, and colleagues while getting a “free service”.
Please set your appointments early to get those refunds,, and get your referrals booking early as well to get your return prepared for free (if you get 3 or more) See the link below for more info.
http://www.rhtaxservices.com/?page_id=244
As always please feel free to contact me at any time via phone, text, email, or any other way you know of. I look forward to a great tax year and working with each of you. See my earlier blog posts for copies of my “Business Expense Worksheet” and “Tax Prep Checklist”.
Also, don’t forget to write a Yelp review for the service if you are a Yelper. Thanks and talk to you soon.
Is the “IRS” calling you on the phone and threatening you?
I’ve been getting quite a few calls these past few months from panicked people after they have received a phone call from the “IRS”. The “IRS” agent begins to threaten the taxpayer with stories of jail and lawsuits unless they pay a fine immediately. In some cases they say they are sending police officers to come and take the taxpayer away to jail in the next 15 minutes unless the fine is paid by credit or debit card. Sounds scary, right?
If these calls were true and legitimate it certainly would be. The only problem is that these calls are a hoax. The real IRS will never call you on the telephone unless you specifically request it, in writing. And even then there is no guarantee. And they certainly will never threaten you with a lawsuit or jail. The real IRS only communicates via “snail mail” and occasionally fax, by request. So, if you, or anyone you know, receives one of these calls from the so called “IRS” just hang up the phone immediately and go about your day. Don’t give them any of your time. I hope this clears up some things for you and your friends and family. As always, feel free to contact me with any questions. Thanks.
Business Expense Worksheet
Most of you already have this document. I put it together using excel and it’s a great form to track your expenses on a monthly basis. Then, when you come into your tax appointment, you can bring it or email it over to me. Click on the link at the end of this paragraph to download and start using. Feel free to add extra rows as you may have deductions that are not listed. Hope your year is going great.