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How To Wipe Out $125K In Past Due Taxes

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Carlos and his best buddy Bear

Hey guys and gals, it’s been a long while since my last post.

Since the recent accidental death of my dog “Bear” on December 30th, it’s been really tough trying to work and concentrate without getting emotional.

If you have lost a family member you know how I feel. But life must move on and I wanted to share with you a story about a recent client success story that even my “Bear” would be proud of me.

“Carlos Saves Client Over $125,000 in Taxes..”

I had a client for who the IRS said they owed $178,299.

This client was like anyone in this position, he was terrified! And when you are scared you tend to do nothing.

The IRS finally issued a wage garnishment on his check and now he could no longer ignore this tax debt because the IRS was taking his money and his employer wasn’t too happy about the garnishment.

I tell all future clients, that when we deal with tax debt, IRS notices, bank levies, liens, or unfiled returns.

I want to make sure that the debt is really valid. The IRS tends to be wrong many more times than you think.

So I pulled all the IRS records and go through those records and figure out what they are trying to do to make sure you really owe the money they are claiming.

Well, when I finally was able to do my research and investigate this client’s debt.

I realized they just made it the tax debt due for 3 years of taxes that were not filed.

So yesterday, after going over those years, prepared accurate tax returns that were missing.

We are going to wipe out over $125,000 of past-due taxes!

I know my boy “Bear” smiling in heaven. Damn’ I miss that guy 🙁

If you are tired of the IRS pushing you around, and looking to finally deal with your tax problems, and want someone to be upfront and honest with you about handling your tax problems.

Just use the link below to book a no-cost free consultation or go here

I have very limited spots open.

I am heading to Texas to speak to over 300 entrepreneurs about how to handle the crazy IRS over the next few years!

Your friend,
Carlos and “Bear” Samaniego

To Book Your appointment go to: https://MeetWithCarlos.as.me/NewClient

P.S. I am looking forward to helping you finally get some sleep at night by taking care of your tax problems once and for all!

Unfiled Tax Returns? Back Taxes? IRS Penalties? Do This! – Redlands CA | Tax Debt Consultant

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We all know the annual ritual: once January rolls around, you gather your tax documents to file your tax returns by the deadline.

Sometimes (or maybe all the time!) you need an extension. And maybe you don’t meet the extended deadline, and
now your return is late and unfiled.

Then the next tax season rolls around, and you still haven’t filed last year’s return—so you don’t want to do the
current one either, out of fear of the IRS or because you need last year’s data.
Now your problem is snowballing—and if you let fear grip you, it can continue for years . . . before the IRS decides to do you in. Don’t let this problem get ahead of you. Let us give you a road map for achieving peace of mind by getting right with the IRS.

If you have late, unfiled tax returns, you have an urgent problem that you should start to fix ASAP. The possible consequences include:

The IRS preparing and filing a return for you1—and almost always overstating the tax you owe by a lot!

The truth is that the IRS rarely criminally prosecutes people for not filing tax returns, but this can and does happen, especially in egregious cases and those of celebrities and public figures, such as Wesley Snipes.

The best way to avoid criminal prosecution is to come forward and voluntarily file any delinquent returns.

The IRS has a time-honored policy that, in general, it will not criminally prosecute for failure-to-file those taxpayers who
come forward and file their past-due tax returns

 

Sincerely,
Carlos Samaniego, EA
Tax Debt Consultants LLC
1255 W. Colton Ave #535
Redlands CA 92374
(909)570-1103

TaxDebtConsultant.com

MeetWithCarlosS.com

Covid-19 Tax Season Delayed Until July 15th – Wait or File Now? | Redlands CA

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As you know, the COVID-19 pandemic has shut down much activity in the United States.

The IRS decided to use its authority in a national emergency to postpone certain tax return filings and payments. This change affects every one of you, and the rules are tricky—after all, this is tax law.

We’ll explain who gets relief; what the IRS postponed; and perhaps more important, what wasn’t postponed. We’ll also tell you whether you should file regardless of the postponement.

 

Who Qualifies?

First, to qualify for postponement, you must have a tax return that is due on April 15, 2020. In general, the returns due on April 15 include the following:

  • An individual filing a Form 1040 series return
  • A trust or estate filing Form 1041
  • A partnership filing Form 1065
  • A corporation filing a Form 1120 series return

In its FAQ, the IRS did not include the Form 1065 for partnerships or the Form 1120S for S corporations when it listed the forms available for relief.

That’s because most partnerships and S corporations have calendar-year returns, making the 2019 tax return due March 15, 2020. But if you have a fiscal-year partnership or S corporation with a due date of April 15, 2020, it should qualify for relief under the official guidance.

Second, you must have one of the following due on April 15, 2020:

  • Tax year 2019 federal income tax return
  • Tax year 2019 federal income tax payment
  • Tax year 2020 federal estimated income tax payment

 

This grant of relief does not apply to

  • federal payroll taxes, including federal tax deposits, and
  • federal information returns.

 

Federal Tax Return Filing Deadline

If you qualify for relief, your 2019 federal income tax return is now due July 15, 2020.

You do not have to file an extension on Form 4868 or Form 7004 or contact the IRS to get the automatic postponement to July 15, 2020.

If you need additional time beyond July 15, 2020, to file your tax return, you can file Form 4868 or Form 7004 on or before July 15, 2020, and get an automatic extension to your normal extension due date:

  • September 30 for Form 1041
  • October 15 for Forms 1040 and 1120

IRA, HSA, and Retirement Plan Payments

The COVID-19 grant of relief also postpones the following payment deadlines until July 15, 2020:2019 individual retirement account (IRA) contribution

  • 2019 health savings account (HSA) contribution
  • 2019 employer qualified retirement plan contributions

 

Should You Wait?

If your tax return shows a refund, file it as soon as possible—get your cash as quickly as you can.

If you have the cash and liquidity to make your tax payments on April 15, 2020, but keeping those payments in your bank account earns extra interest income, we see no reason you shouldn’t delay until July 15, 2020.

If you have problems with making timely estimated tax payments, we recommend you keep the normal schedule as long as you have the liquidity and cash to make the payments. We don’t want you to fall into bad habits and possibly create an unpayable balance due on your 2020 tax return.

Be safe and take care.

 

Sincerely,

Carlos Samaniego, EA
Tax Debt Consultants LLC
1255 W. Colton Ave #535
Redlands CA 92374
(909)570-1103

 

P.S. Don’t forget. I’m always here to help you in any way I can. My direct line is 909-570-1103.

Should We Expect Delays In Refunds?

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Taxpayers have a number of deadlines they have to meet every year. Many of them wait until the last minute to complete their tax returns or file for extensions, facing the danger of costly penalties if they don’t get things done in time.

You don’t often hear about the IRS needing an extension to get its part of the tax puzzle completed, but that’s exactly what could happen this year. The magnitude of changes to the tax laws over the past year and the governmental shutdown means the tax agency could have a tough time starting the 2019 tax season on time.

The challenges began with the complexity of the tax changes and those would be hard enough. Among the highest priority items were concerns about taxpayer data security, identity theft, enabling greater online access for taxpayer services, and upgrading key systems. Many of these issues have been near the top of similar lists for years, reflecting the ongoing need to deal with these problems and the difficulties in finding lasting solutions.

With the implementation of the Tax Cuts and Jobs Act, the IRS is facing the need for massive resources to meet taxpayer expectations while still ensuring compliance with all the new laws in their entirety.  Now, with the government shutdown, the ability for the IRS to meet these changes for the 2019 tax season may very well prove insurmountable.  

The Tax Cuts and Jobs Act contained nearly 120 provisions that the IRS is responsible to administer, affecting both domestic and international taxation. The tax agency quickly estimated that implementing tax reform would require creating or revising roughly 450 forms, publications, and sets of instructions. In addition, roughly 140 information technology systems to process tax returns and monitor compliance would require modifications to ensure smooth operation, and the IRS would need to handle roughly 4 million additional telephone calls and other contacts from taxpayers trying to figure out what impact the new tax laws would have on their own individual returns.

The Inspector General praised early IRS attempts to get things moving in the right direction, but it’s still warning that the 2019 tax filing season could get delayed. Historically, returns become available for filing around the third or fourth week of January. Yet with the IRS IT department having already missed some early deadlines, it’s possible that there won’t be enough time for testing near year-end without putting off the start of tax season. Already, some information that the IRS typically releases, such as tax brackets and annual changes to various thresholds and limits, weren’t produced as early as they have in previous years.

Taxpayers need to keep an eye on the IRS to see how the shutdown will ultimately impact the tax season.  Unless the tax agency can pick up the pace and move as efficiently as possible, then taxpayers in a hurry to get their returns filed to claim their refunds could have to wait longer than they’d like.

If you or your clients have any tax issues or problems with the IRS/State or  other federal tax problems, please feel free to contact me directly at (909) 570-1103 or by email at Carlos@HealthcareTaxadvisor.com

Carlos Samaniego, EA

Enrolled Agent

Licensed by The Department of Treasury to represent taxpayers

Listen to my podcast on Anchor or your favorite podcast app – Click Here

1255 W Colton Ave, #535

Redlands, CA 92374

Ph. (909)570-1103

Fax (909)586-9190


6 Strategies for Tax Planning Your Year-End Stock Portfolio

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The beauty of tax planning your year-end stock portfolio is that it might cost you pennies in commissions but allow you to pocket real money.

Here’s the basic strategy:

  • Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income.
  • Lower the taxes to zero—or if you can’t do that, then lower them to 23.8 percent or less by making the profits subject to long-term capital gains.

Think of this: you are paying taxes at a 71.4 percent higher rate when you pay at 40.8 percent rather than the tax-favored 23.8 percent.

Strategy 1

Examine your portfolio for stocks that you want to unload, and make sales where you offset short-term gains subject to a high tax rate such as 40.8 percent with long-term losses (up to 23.8 percent).

In other words, make the high taxes disappear by offsetting them with low-taxed losses, and pocket the difference.

Strategy 2

Use long-term losses to create the $3,000 deduction allowed against ordinary income.

Again, you are trying to use the 23.8 percent loss to kill a 40.8 percent tax (or a 0 percent loss to kill a 12 percent tax, if you are in the 12 percent or lower income tax bracket).

Strategy 3

As an individual investor, avoid the wash-sale loss rule.

Under the wash-sale loss rule, if you sell a stock or other security and purchase substantially identical stock or securities within 30 days before the date of sale or after the date of sale, you don’t recognize your loss on that sale. Instead, the code makes you add the loss amount to the basis of your new stock.

If you want to use the loss in 2018, then you’ll have to sell the stock and sit on your hands for more than 30 days before repurchasing that stock.

Strategy 4

If you have lots of capital losses or capital loss carryovers and the $3,000 allowance is looking extra tiny, sell additional stocks, rental properties, and other assets to create offsetting capital gains.

If you sell stocks to purge the capital gains, you can immediately repurchase the stock after you sell it—there’s no wash-sale “gain” rule.

Important. Don’t die with large capital loss carryovers—they’ll disappear.

  • If your carryover originated from you only, then it all goes away if not used on your joint return in the year of your death.
  • If your carryover came from joint assets, then your surviving spouse gets 50 percent of the carryover to use going forward.

Strategy 5

Do you give money to your parents to assist them with their retirement or living expenses? How about children (specifically, children not subject to the kiddie tax)?

If so, consider giving appreciated stock to your parents and your non-kiddie-tax children. Why? If the parents or children are in lower tax brackets than you are, you get a bigger bang for your buck by

  • gifting them stock,
  • having them sell the stock, and then
  • having them pay taxes on the stock sale at their lower tax rates.

Strategy 6

If you are going to make a donation to a charity, consider appreciated stock rather than cash because a donation of appreciated stock gives you more tax benefit.

“Whoa, did you say more tax benefit?”

Yes. It works like this:

  • Benefit 1. You deduct the fair market value of the stock as a charitable donation.
  • Benefit 2. You don’t pay any of the taxes you would have had to pay if you sold the stock.

Strategy 7

If you could sell a publicly traded stock at a loss, do not give that loss-deduction stock to a 501(c)(3) charity. Why? If you sell the stock, you have a tax loss that you can deduct. If you give the stock to a charity, you get no deduction for the loss—in other words, you can just kiss that tax-reducing loss goodbye.

Solution. Sell the stock first to create your tax-deductible loss. Then give the charity the cash realized from your sale of the stock to create your deduction for the charitable contribution.

If you or your clients have any tax issues or problems with the IRS/State or  other federal tax problems, please feel free to contact me directly at (909) 570-1103 or by email at Carlos@HealthcareTaxadvisor.com

Carlos Samaniego, EA

Enrolled Agent

Licensed by The Department of Treasury to represent taxpayers

Listen to my podcast on Anchor or your favorite podcast app – Click Here

1255 W Colton Ave, #535

Redlands, CA 92374

Ph. (909)570-1103

Fax (909)586-9190

Business Meals are Deductible Again!

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Dear Client:

Hip, hip, hooray for the IRS!

In Notice 2018-76, the IRS states that client and prospect business meals continue as tax deductions under the Tax Cuts and Jobs Act.

This is very good news indeed.

Under this new IRS guidance, you may deduct 50 percent of your client and prospect business meals if

  1. the expense is an ordinary and necessary expense under Internal Revenue Code (IRC) Section 162(a) that is paid or incurred during the taxable year in carrying on any trade or business;
  2. the expense is not lavish or extravagant under the circumstances;
  3. the taxpayer, or an employee of the taxpayer, is present at the furnishing of the food or beverages;
  4. the food and beverages are provided to a current or potential business customer, client, consultant, or similar business contact; and
  5. in the case of food and beverages provided during or at an entertainment activity, the food and beverages are purchased separately from the entertainment, or the cost of the food and beverages is stated separately from the cost of the entertainment on one or more bills, invoices, or receipts. The entertainment disallowance rule may not be circumvented through inflating the amount charged for food and beverages.

To prove your business meals, follow the two easy steps below:

  1. Keep the receipt that shows the name of the restaurant, the number of people at the table, and an itemized list of food and drinks consumed.
  2. On the receipt, record the name or names of the person or persons with whom you had the meal and also record the business reason for the meal.

In the event that the receipt is not available, such as with the purchase of hot dogs and drinks at a baseball game while sitting in the stands, make sure to make a written note of the expenditures immediately after the game.

If you charge a business meal to a credit card, the credit card statement provides your proof of payment. When possible, always pay by credit card or write a check so that you have clear proof of payment.

Proof of payment is not proof of what you purchased, so in addition to proof of payment, keep the receipt with the notations as described earlier. With this combination of proof of payment and receipt with notations, you have what we call audit-proof documentation.

P.S. If you would like to review your business meal deductions with me, please call me on my direct line at

contact me directly at (909) 570-1103 or by email at Carlos@HealthcareTaxadvisor.com

Carlos Samaniego, EA

Enrolled Agent

Licensed by The Department of Treasury to represent taxpayers

Listen to my podcast on Anchor or your favorite podcast app – Click Here

1255 W Colton Ave, #535

Redlands, CA 92374

Ph. (909)570-1103

Fax (909)586-9190