Optima Newsletter

Optima Newsletter – March: Can you use cryptocurrency to pay taxes?

Can You Use Cryptocurrency to Pay Taxes?
While cryptocurrency has left many people skeptical of its value, the American government is validating its use with some surprising changes in taxes. In the last few years, states have been racing to make cryptocurrency mainstream, in hopes that one day Americans can use it to pay their taxes.

Can the IRS Garnish Your Social Security?
Many taxpayers rely on Social Security to get by after retiring. Unfortunately, taxpayers with outstanding tax liabilities may be at risk of a levy on their retirement funds. How much can the IRS take and what should you do? CEO David King and Lead Tax Attorney Phillip Hwang discuss everything you need to know about Social Security garnishments.

2022 IRS Interest Rates Increase
Beginning April 1, 2022, the IRS will raise its interest rates for the quarter. These changes apply to quarterly taxpayers, such as corporations and self-employed filers.

Reporting Cryptocurrency to the IRS
The topic of crypto gains more mainstream attention as the IRS takes interest in digital assets. In early March, the IRS sent out about 10,000 letters to taxpayers with digital asset transactions, requiring them to report ownership.

By |Optima Newsletter, Tax News|Comments Off on Optima Newsletter – March: Can you use cryptocurrency to pay taxes?

Optima Newsletter – February: Reduced Refunds

Reduced Refunds: Will Your Refund Be Garnished?
You may have already received your tax documents for the 2022 season and it’s time to file. Many taxpayers experience some anxiety around filing season because of uncertainty. Will you owe the IRS? Will your refund be garnished? There are a few instances where you can expect the IRS to reduce your refund, or garnish the whole thing.

Side Hustles and Taxes: What You Need to Know
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.

Pending Status on Previous Tax Returns Can Delay this Year’s Return
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.

Court Upholds Rulings on Passport Denial for those with Major Tax Debt
Trips that require a passport, however, may be postponed for Americans with tax debt. The IRS previously authorized State Departments to revoke or deny your passport if you have delinquent tax debt. 

By |Optima Newsletter, Tax News|Comments Off on Optima Newsletter – February: Reduced Refunds

Optima Newsletter – January: 2022 Filing Reminders

2022 Filing Reminders

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

IRS Enforcement is Back! What You Need to Know

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 Distribution Tips

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

Rules for Claiming a Dependent

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

By |Optima Newsletter, Tax News|Comments Off on Optima Newsletter – January: 2022 Filing Reminders

What are Gift Taxes?

What are Gift Taxes?

The holiday season is upon us, and so is the season for giving. Gifts are wonderful ways to show your appreciation to those around you, but are you aware of gift taxes? By federal definition, a gift is something of value transferred to another individual. Gift taxes are federal taxes paid by the individual that gives the gift.

Read More

7 Year-End Tax Tips

As we approach 2022, Optima wants to wish you a happy holiday season and remind you to take advantage of this special time of year. The end of the year is the perfect time to organize your tax records and prepare to file! Optima CEO David King prompts thought-provoking topics as Lead Tax Attorney Philip Hwang provides comprehensive tips for year-end tax filing. Ensure your tax return is as accurate as possible and cement a successful tax season with this video guide from Optima Tax Relief!
Watch Video

Claiming Charitable Donations on Your Tax Return

The holidays often inspire more taxpayers to donate than any other time of year. Charitable donations are often deductible when filing returns and can provide you with more money back for your refund. However, if you are expecting an itemized deduction, you should know that there are limitations for qualified contributions.

Read More

IRS Changes Offer in Compromise Policy

Tax debt relief may have gotten a little easier. The IRS has just announced a major adjustment to the offer in compromise policy that will remove some obstacles for potentially eligible taxpayers. 

Read More

By |Optima Newsletter, Tax News|Comments Off on What are Gift Taxes?

The Future of Child Tax Credit

Child tax credit has been a reliable source of additional income for families struggling through the pandemic. While there were plans to continue the monthly checks for at least another five years, it seems the program will be coming to an end in about one year.

Read More

Revenue Officers and Small Businesses

Many small business owners are at risk of being assigned a Revenue Officer (RO). If a small business withholds taxes from their employees but fails to hand it over to the IRS, the IRS can assign an RO, garnish bank accounts and wages, seize property and real estate, and even show up at your place of business. Here are some helpful tips for small business owners if they are assigned an RO.

Read More

Optima Wins BBB Torch Award for Ethics

Optima Tax Relief is proud to announce that we have earned our second BBB Torch Award! This award puts the spotlight on businesses with exceptional dedication to integrity and ethical business practices. The Torch Award is just the latest in the series of awards Optima has earned this year, including the Orange County Civic 50, Top Workplaces USA, and several Stevie Awards for best-in-class Consumer Service.

Read More

How to File Business Taxes for an LLC

It’s important to choose how you want your earnings to be taxed because the IRS will automatically treat your business as a partnership. This designation doesn’t fit if you’re a sole proprietor or prefer to file as a corporation. Once you choose your tax rules, you cannot change the designation again for five years, which is why you must choose wisely.

Read More

By |Optima Newsletter|Comments Off on The Future of Child Tax Credit

IRS Signs Three New Collection Agencies

The IRS recently signed contracts with three private-sector collection agencies, taking effect Thursday, Sept. 23, 2021. Taxpayers that are behind on payments toward their debts may be contacted by one of the new agencies. Here’s what you need to know:

Read More

What Is An IRS Revenue Officer?

Revenue Officers deal with the most advanced tax collection cases that the IRS has on file. If you owe a large sum of money to the IRS, you could potentially have a Revenue Officer assigned to you. Optima CEO David King and in-house Revenue Officer expert and Enrolled Agent, Rosie Steele, provide helpful tips on what individuals can do if they have been assigned a Revenue Officer.

Watch Video

Payment Service App Taxes

Since 2009, apps such as Venmo have been evolving into common payment methods for businesses and individuals. Now, peer-to-peer payment apps are gaining the government’s attention regarding unreported income. To remain compliant with the IRS, there are some things to consider if you utilize these apps for business.

Read More

What is the Vehicle Mileage Tax Program?

The Senate recently passed President Joe Biden’s infrastructure bill, which includes a pilot program for vehicle mileage tax. This tax would charge drivers based on how many miles they drive in a year. The vehicle mileage fee will likely bring in revenue for transportation and future infrastructure projects.

Read More

By |Optima Newsletter, Tax News|Comments Off on IRS Signs Three New Collection Agencies

Taxpayers may have to pay back some of the new $3,000 Child Tax Credit

Child Tax Credits are expected to be distributed out to qualifying taxpayers throughout July by the IRS. Some recipients may be required to pay back a portion of their credit for the next tax filing season. Here is what eligible taxpayers need to know before receiving the credit.

Read more

What is a Federal Tax Lien?

Owing a tax balance with the IRS could lead to an individual having a lien placed on their assets or property. Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful tips on what people could expect if a lien is filed against them and what they would need to do to resolve their tax liability.

Read more

Taxpayers are reminded that Filing an Extension is not an Extension to Pay Taxes

Taxpayers that have filed a tax extension and also have a tax balance need to be aware that filing an extension with the IRS will not stop penalties and interest from accruing. The IRS offers a variety of options that they should consider when it comes to dealing with the IRS.

Read more

Did you receive Multiple Notices about your Economic Impact Payment?

The IRS has issued out three Economic Impact Payments to qualifying taxpayers. The IRS also mailed out notices to those who received the payment that detailed how much of the payment they received, how the payment was made and how taxpayers should report their payment when filing their tax return.

Read More

By |Optima Newsletter|Comments Off on Taxpayers may have to pay back some of the new $3,000 Child Tax Credit

Taxpayers can opt out of Child Tax Credit monthly payments

The expanded child tax credit will be issued out to qualifying families in monthly installments starting in July. Families that qualify for the full amount will receive $300 per month for children under the age of 6 and $250 for those between the ages of 6 and 17.

Read more

How long does the IRS have to collect on your unpaid tax debt?

Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful tax tips and answer questions Americans may have about outstanding tax liabilities and how long the IRS can collect on them before their tax balance expires.

Read more

What to expect when dealing with the IRS

Those who fail to pay their tax liability in full will receive a letter from the IRS stating the amount that they owe. Once a notice is sent out, the collection process will continue until the balance has been paid in full or when the IRS can no longer legally collect on it. Individuals who owe the IRS should try to resolve the matter as soon as possible in order to prevent the IRS from coming after them.

Read more

The IRS issues a temporary increase in meal deductions for businesses

the IRS and the U.S. Treasury Department issued guidance related to the Taxpayer Certainty and Disaster Relief Act of 2020. The act provides a temporary exception to the 50% limit on the amount that businesses are able to deduct for food and beverages.

Read more

By |Optima Newsletter|Comments Off on Taxpayers can opt out of Child Tax Credit monthly payments

Taxpayers could Receive a Tax Break on Unemployment Benefits

The recently passed $1.9 trillion American Rescue Plan allows qualifying taxpayers who received unemployment during the 2020 tax year to have the first $10,200 of those benefits exempt from their federal income taxes. 

Read more

The IRS has Resumed its U.S. Passport Revocation Program

The IRS recently announced that they are resuming their Passport Revocation Program. Optima CEO David King and Lead Tax Attorney Philip Hwang discuss how this program can cause delinquent taxpayers to lose their passport until they become compliant with the IRS. 

Read more

Unemployment Fraud could affect Individuals this Tax Season

Due to the ongoing pandemic, millions of Americans lost their jobs, many of whom received unemployment benefits from their state agency. As taxpayers start to file their taxes, they need to be aware of scammers looking to file fraudulent unemployment benefits and steal their personal information.

Read more

Filing your Taxes may be much harder this year

The IRS granted taxpayers additional time to file their federal tax returns due to COVID-19 and new stimulus provisions that made the current tax filing season much more complex compared to prior years. With so many new tax law changes, taxpayers should be more cautious when filing their taxes.

Read more

By |Optima Newsletter|Comments Off on Taxpayers could Receive a Tax Break on Unemployment Benefits

Did your State Tax Filing Deadline Change? Here’s what You need to Know.

The IRS recently announced that the federal tax deadline has moved from April 15 to May 17. Taxpayers need to be aware that although the IRS is allowing them additional time to file federal tax returns, their state tax extensions may differ. Read more to see when your state tax filing deadline is.

Read more

Taxpayers in Texas have until June 15th to File their Taxes

Taxpayers who reside in an area that was severely impacted by winter storms and declared a disaster area by the Federal Emergency Management Agency automatically qualify to file their taxes up until June 15th. The new extension will also extend the 2020 contribution deadline for those affected into individual retirement accounts (IRAs) until June 15.

Read more

Working from Home could mean You will face a Double Tax Hit this Tax Season

Millions of Americans have gone from working in an office to working from home. Those who worked their office job in one state but resided in another, may need to file their taxes differently this year and could face certain tax implications.

Read more

How the IRS Taxes Cryptocurrency

Individuals who invest in cryptocurrencies need to be aware that they could face tax implications when they file their taxes. Read more to find out what you need to know before you invest in crypto and how to ensure you avoid any tax time surprises.

Read more

By |Optima Newsletter|Comments Off on Did your State Tax Filing Deadline Change? Here’s what You need to Know.