Working with a qualified tax preparer can lessen the likelihood of delays and mistakes when you file. What makes a tax preparer qualified? Lead Tax Attorney Philip Hwang and CEO David King discuss tips for choosing your tax preparer. The Tax Show hosts cover types of tax professionals, credentials, minimum requirements, and red flags to look out for. Tune in to learn how to choose the best tax preparer for your tax situation.
From the start, the COVID-19 pandemic has been the biggest setback for the IRS. Millions of Americans have been waiting for tax returns and refunds from previous years, causing even more delay for 2022. If your returns from last year are still pending, then your return will be delayed this year as well.
Electronic filing of your taxes is a great way to lessen the likelihood of delays. You can also validate your return with last year’s adjusted gross income so it doesn’t get rejected.
National Taxpayer Advocate Erin Collins recommends entering $0 for your 2020 adjusted gross income when you file online.
If you collected the advanced child tax credit or your stimulus via the non-filer tool in 2021, the IRS recommends entering $1 for last year’s adjusted gross income.
There’s a possibility of the IRS rejecting your electronic return if you do not follow these steps. A tax software would typically send you a rejection email if your return shows conflicts with your adjusted gross income.
Receiving a CP80, or notice of a missing tax return could also leave your return in a pending status. If you received this notice and your return is still pending, you should also enter $0 for your 2020 adjusted gross income.
There is a chance that the IRS processed last year’s return after sending the notice. In which case, your adjusted gross income of $0 will be rejected. Should this happen, you can refile your 2021 return with the correct adjusted gross income.
It helps to have a transcript to check the status of your 2020 return if you aren’t sure.
If you have a delinquent tax liability and need assistance with your 2020 return, call Optima for a free consultation at (800)536-0734.
Have you ever used PayPal or Venmo? These third-party payment apps have gained the attention of the IRS. Many Americans use these apps casually for group outings, while others have been using them for their side-hustle transactions. Filing requirements have drastically changed in 2021, now requiring taxpayers to report income of $600 or more using one of these apps. Philip Hwang, Lead Tax Attorney, and Optima CEO, David King provide useful tips so that you can understand whether or not you owe, and when you should file your side-hustle income.
Are you preparing to sell a property, but you have a tax liability? Liens can be a hindrance to real estate transactions, but they don’t have to be. Optima’s Lead Tax Attorney Philip Hwang shares some vital tips with CEO David King on how to deal with your lien before selling. The Tax Show hosts cover everything from how to find out if a lien has been filed, to how to withdraw a lien. Give yourself plenty of time to sort out your lien with a tax professional before refinancing or selling your home.
It’s the start of a new year, which means that tax season is right around the corner. A few things have changed in the last couple of years, so it’s important to make sure you’re up to date on current tax news before you file.
Read More
CEO David King highlights the difficulties of dealing with IRS Enforcement; otherwise known as Collections. Optima’s Lead Tax Attorney, Philip Hwang, shares his insight and offers “Tax Pro Tips” ranging from IRS authority, to what you can expect when you’re subjected to IRS collection actions.
Watch Video
Click here for more from The Tax Show for People Who Owe.
Retirement accounts can help reduce your taxable income and possibly increase your tax refund. Some accounts may have a year-end deadline for your contribution and required distributions, while others allow additional time.
Read More
Dependents are usually children or relatives in your household that require your care. These characteristics allow you to be eligible for some tax deductions and credits. Knowing when to claim a dependent and how will be vital to preparing your tax return this season.
Read More
