They may look and sound real—or nearly so. But don’t be fooled. Here are some common ways to tell if that tax collection letter, email, text or phone message you just received might be bogus. First, know this: Collection agencies. For certain overdue tax debts, the IRS will send a letter to the taxpayer letting them know it has turned their case over to one of the three private debt collection agencies, or PCAs, that it authorizes to settle the debt. The IRS letter will confirm assignment of the taxpayer’s account to one of the three PCA’s. The IRS assigns a taxpayer’s account to only one of these agencies but … Read More
Author Archives: Marcia Stepanek
Minimize Taxes: Use the Right Retirement Plan
We’re heading into the end of 2022, and it’s around this time of year when tax projections of business profits are performed. It’s also when business owners and their accountants begin mapping out year-end strategies to minimize their taxes to get their company’s business income right where it needs to be. So this year, talk to your accountant and make sure you don’t overlook one of the most commonly used deductions a business can make to minimize taxes—those which allow for retirement plan contributions. “Many businesses still use a Traditional IRA plan, which may have been the right plan to use years ago, but it may not be the most … Read More
Child Tax Credit Tips
The advance monthly payments for the Child Tax Credit in 2021 are making filing taxes this 2022 tax season more complicated, so be sure to take these steps before you file—and/or get our advice quickly. Make sure you’re up to speed on how the Child Tax Credit has changed. For tax year 2021, the regular Child Tax Credit increased from $2,000 per qualifying child to: $3,600 for children ages 5 and under at the end of 2021; and $3,000 for children ages 6 through 17 at the end of 2021. However, these amounts will be lower if you received the advanced child tax credit last year. Advance payments. The advance payments of … Read More
Be Crypto Careful
Crypto-currency is hot right now—and yes. It is definitely taxable this 2022 tax season. The IRS considers cryptocurrencies like Bitcoin, Ethereum and other forms to be “property” for tax purposes, which means your virtual currency is taxed in the same way as other assets you may own, like stocks or gold. “This year, the IRS is putting a lot of agents in surveillance mode for the agency,” says Rock&Hammer Partner Daniel Portillo. “The IRS has increased the number of its agents auditing personal tax returns, so it’s important to report all gains or losses related to virtual currencies.” 2021 was a big year for crypto, with many new investors buying … Read More
The COVID Factor
COVID has triggered a lot of change in the world, and will complicate your taxes this year. Be sure to get qualified, professional tax help before filing, and be ready to answer at least some of the following questions: Did you get your stimulus checks? The amount of your stimulus payments must be reconciled on your 2020 Form 1040 to determine if you qualify for the Recovery Rebate Credit. The recovery rebate credit is a new addition to the federal income tax return. Did you qualify for stimulus payments but didn’t receive them or didn’t get the full amount to which you are entitled based on your 2020 income? The Recovery Rebate … Read More