Welcome to the Dr. Friday Radio Show! In this episode we have tax expert, Dr. Friday, take on the latest tax updates, answer the caller’s questions, and talk over the following topics:
- Individuals Who Have Not Received Their Tax Refund
- Second Quarterly Estimate Due on June 15th
- PPP Reporting Rules for Tax Returns
- Why Is The IRS Checking For Identity Theft?
- How To Get In-Person Appointments With the IRS
- Tax Filing Extension Due October 15th
- How To Handle an Offer in Compromise
- How Dr. Friday Can Help You Find Tax Resolutions Offering Compromises
- Selling Property and the Tax Complications
- What Is ID.me and Is It Safe?
- How To Get Back On Track With the IRS
and much more!
Transcript
Announcer 0:00
No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.
Dr. Friday 0:29
Good day I’m Dr. Friday, and I’m live here in the studio. So if you’ve got a question, it’s actually a gorgeous day outside, playing in the dirt or morning enjoying myself. And you know, the weather isn’t too bad as long as the shades out there, I guess I should say.
Dr. Friday 0:46
So if you have questions, you can join us live here in the studio at 615-367-0819. 615-367-0819 that’s the number we’re looking for 615-737-9986 Sorry about that guys getting confused with my own direct line. And you can call us live here in the studio if you want. If you’ve got questions concerning taxes.
Dr. Friday 1:18
I can tell you that I have a number of emails for individuals that have still not received their refund, be it either their regular 2021 refund and/or their stimulus money even though they filed their taxes. They’re getting rejection letters, saying that they’ve changed their tax return because the IRS is saying that they did receive this letter.
Dr. Friday 1:42
Now I’m going to be quite honest with you, we are working with the tax advocate office, we are trying to find ways to be able to get a better resolution because right now if you were to call in, they’re going to tell you that the cheque was sent to you or that you received it on this day. And that’s as much information as you’re going to get. And for many people, they’re like, “I never did get it and never received it. I never cashed it.”
Dr. Friday 2:09
So they are telling us that they are reconciling the payments as they have come back to them. And then they will be, I’m assuming, there’ll be resubmitting back out those payments, but we haven’t received a resolution on that to know that for a fact. So just as a point of interest, my suggestion for anyone that hasn’t received their refund, I would check.
Dr. Friday 2:37
Actually, if you haven’t been online for a while, because I have a number of people that we failed two and three years at a time, you can check your refund now for 19, 20, and 21. When you click on “Where’s My Refund.” So if you’re looking for more than one year’s refunds, you now can do that that’s new, they didn’t use to have that they used to only have the year in which we were operating. So this case is only in 2021.
Dr. Friday 3:02
But I would go to IRS.gov, and click on “Where’s My Refund.” And I would then go ahead and find out where your actual refund from your tax preparation for the year 2021. They are also sending everybody on to the IRS. And you can check the status of your stimulus in all three of them. But you do have to be able to sign on through the IRS website.
Dr. Friday 3:29
That does require you to have a cell phone in some cases, I have some people that do not have that information, they don’t have credit cards. So if you’re not able to do that, that’s not going to be a resolution. But if you’re an individual that does have a cell phone or a credit card, you should be able to get yourself through the ID.me verification, and then you can go on there.
Dr. Friday 3:53
What’s nice about that is you can actually, you know, every year look and check and see, especially if you’re having some issues with getting your refund. So that may be a helpful situation as well as far as the stimulus money, especially if you’re looking at your transcripts for your tax return. Sometimes, even though it shows up that it’s been accepted, it can take three to four weeks for it to actually get into the transcript.
Dr. Friday 4:17
So that may or may not help. I know a lot of times people are rushing to get them filed because they’re trying to refi or trying to buy a house or something. And again, in those situations, your best bet is to obviously e file as fast as possible.
Dr. Friday 4:33
Actually had someone call me and I don’t know. Prior to COVID, I guess we’d say pre-COVID Nowadays, we would be able to go down to the internal revenue or the IRS office and they could stamp a tax return and I know back in 2018 or 19 they were able to use that as proof that the taxes had been accepted or at least been filed with the IRS. Of course, I know a lot of the mortgage situation or the rules for mortgage companies have constantly changed the like taxes. And I think they have to use, they actually physically have to be able to pull the taxes from a 4605 or something like that, that we all sign for them to have copies of your tax return. But it may be something to use while you’re trying to get approval on that or what’s moving.
Dr. Friday 5:20
So if you want to join the show, you can 615-737-9986, taking your calls talking about my favorite subject taxes, money issues, or if you’ve got something you want to share something maybe that’s happening or something that you’ve had when it comes to actually deal with the IRS, we hear a lot of times where people have been hung up on I’ve had that happen where I’ve held on for, you know, 30-40 minutes, and then they hang up. Now they do say that they’re going to be hiring 1000s of individuals that will be helping us. And I know a lot of people probably listening right now think, “Oh, great, more revenue.”
Dr. Friday 5:59
But to be quite honest, we don’t have the service that we need. Considering my business or a big chunk of it is helping to have resolution with the IRS. And if we don’t have the ability to reach the IRS to get a resolution to find out where the status of a lien or levy or to actually get a human on the phone to be able to get some sort of communication started, it makes it very difficult to actually do something.
Dr. Friday 6:26
So it would be really, really good if we’d be able to, you know, have somebody on the other end of the line that actually knows how to do some sort of resolution on their side. I’m not overly excited about the fact that they can hire people and they don’t have any experience requirements at all. I mean, we are talking about having people’s personal information, tax information, etc, etc.
Dr. Friday 6:51
So, you know, hopefully, they’re taking the precaution just as we would in, you know, in our business, you know, you don’t want somebody that can have access to people’s information and not have anything done there. All right, let’s talk to Joyce in Tennessee. Hey, Joyce, what’s happening?
Caller 7:09
Nice day, kind of overcast. Just got a question about some taxes.
Dr. Friday 7:16
Okay, what can I do for you?
Caller 7:18
Well, I’m really worried, like I told him, my 2020 hasn’t been done my sister, she’s a CPA. And she’s kind of, I’m just gonna say, she’s off her meds. And it’s worrying me because we’ve never had any tax trouble. And I didn’t know what I need to do or if you can tell me what to do.
Dr. Friday 7:42
Sure. You said you’re 2020. So you would have 2020 and 2021 that need to be filed just to keep you in compliance. And does it say you have a farm?
Caller 7:55
Yeah, we have cows and we have expenses on a truck. And you know, truck insurance.
Dr. Friday 8:00
Do you guys live on a piece of property where you have cows or whatever? Or do you guys have a separate piece of property that you either rent or own and have a farm?
Caller 8:10
No, it’s the whole thing. And it’s 33.3 on one part, and it’s 15 acres we bought 3 years ago.
Dr. Friday 8:19
Is it just you and your husband that had the farm or is it a family-held farm?
Caller 8:23
Well, it would’ve been but we’ve lost a couple, and my older son, he’s not able.
Dr. Friday 8:30
Okay, right now. You and your husband? Correct?
Caller 8:34
Yeah. He’s got COVID.
Dr. Friday 8:38
That’s a difficult situation. So my suggestion would be is I don’t know what part of town you live in. But you need you might need to look to have someone else myself or someone else do the taxes because I’m hoping that your sister at least for the 2021 tax year filed an extension hopefully also that maybe you don’t always owe taxes so therefore if you don’t owe money being late it’s not really a huge crisis. If you do owe money it becomes more expensive as a penalty.
Caller 9:11
Yeah. I realize that. Yes, ma’am.
Dr. Friday 9:14
Yeah, so normally pay it those, you know reduce any of those so you can give my office a call obviously on Monday we’d be more than glad to help but if you’re out and you know out in an area that’s too far to drive into Brentwood you know we could probably give you some referrals or someone you know that might be closer to you. I don’t know how far out you are from you know. My office is in Brentwood.
Caller 9:37
Do you know where Murfreesboro is in Nashville? Murfreesboro? Woodbury?
Dr. Friday 9:44
Is that where you live near?
Caller 9:46
And then you go on from Woodbury to McMinnville.
Dr. Friday 9:51
McMinnville, okay I’ve driven through McMinnville or at least the sign says McMinnville I don’t know if I’ve actually been in the town but so you’re out a bit further, obviously.
Caller 10:04
I just need some help. And the first thing is going to be me.
Dr. Friday 10:09
Yeah, well, if you want, you can either email me if you want or call me Monday and we can give you some referrals in the Murfreesboro area.
Caller 10:18
Okay. Okay, your email and they give me your phone number.
Dr. Friday 10:22
You got it. My email is like my first name, friday@drfriday.com. So friday@drfriday.com. And my phone number is 615-367-0819.
Caller 10:43
Okay, friday@drfriday.com. Okay, and then 615-367-0819. Okay, and what was your name?
Dr. Friday 10:58
Friday. Just like the day of the week.
Caller 11:04
Sorry. It’s been a long year, and we’re still going to have to have another surgery. So I’m just, I’m so tied up with him. Of course, my husband’s getting kind of, you know, they don’t get along at all, at all. Anyway, I do appreciate and I will get back to you because I want to get something done because I’m getting scared.
Dr. Friday 11:26
Yeah. Sounds like you have enough pressure. This is something that someone can help you with. Okay?
Caller 11:31
Thank you. Have a good day.
Dr. Friday 11:32
No problem. Thank you. Yeah, you too. All right, we’re going to take our first break here in just a minute. If you want to join the show, you can at 615-737-9986. I’m an enrolled agent licensed by the Internal Revenue Service. I’ve never worked for the Internal Revenue Service, but I am licensed by them to do representation and taxes
Dr. Friday 11:58
So if you have problems with taxes, or you need to deal with an offer and compromise a payment plan, you have no idea where to get started, because you’re behind on taxes. I’m the person least you want to start with, let’s help you get straightened out and figure out where we can go to get you back on track. And, you know, it’s what we do every day for the last 20 plus years. So if you want to join the show, 615-737-9986, and we’ll be right back with the Dr. Friday show.
Dr. Friday 12:32
All right, we are back here live in the studio. I’m Dr. Friday. This is the Dr. Friday show. And we talk about my favorite subject at least which is taxes. And you know, even though the tax season per se is over, there are many people that filed extensions, some people that haven’t been filed for the last number of years. And you know, hopefully, if you filed an extension, you have until October 15.
Dr. Friday 12:56
But remember that has nothing to do with the money you owe, it just delays the paperwork. So if you haven’t actually filed your taxes, or if you haven’t paid your taxes, you extended the time of the paperwork that you’re going to need to get into. But it does not do anything for the way that you’re going to need to deal with the money do.
Dr. Friday 13:20
So, the sooner you can start making payments. Even if you don’t have the ability to pay the whole thing up front sooner you can start making payments sooner you’re going to or less money you’re going to pay when it comes to that kind of situation. So that being said, you can certainly join the show.
Dr. Friday 13:37
If you have a question maybe you have a friend or someone that has a tax situation or maybe even yourself maybe something happened in 21 or 22 that you’re not sure if you handled the taxes correctly. I know we’re doing the association, Tennessee Association of Enrolled Agents, we have a conference coming and will be in the Mount Juliet area from the 14th and 15th of July. And we’re going to be covering a lot of the things.
Dr. Friday 14:03
And I know one of the things that I found interesting was how PPP money needed to be reported on tax returns. And you know, they changed the rules partway through the year so if you’re a person that a business that had received PPP money you might want to make sure that your statement and what’s called a statement of receiving was attached to your return or it may be something that needs to be added.
Dr. Friday 14:31
Not that we’re looking to find problems people but we do need to make sure that we comply otherwise the IRS will be sending us a sweet little love letter saying, “Oh wow, you know what? You need you missed this, and you need to send this to us,” or you know for the sake of reconciliation or anything else.
Dr. Friday 14:48
Also, talking about PPP money. Keep in mind there was a period in which, I mean, hopefully, if you received the first PPP money came out in 2020. Second, many people received it in 2021. And you had from the date of the expiration. So in most cases, from the date you received it, you had 24 weeks, and then you had 10 months. If you did not ask for forgiveness, then, of course, you know, it turned into a loan.
Dr. Friday 15:20
But what a lot of people don’t know is that you can still ask for forgiveness, but you have to start making the payments. So there is a possibility of still getting your forgiveness after the time that you’ve done it if you have the documentation. But you do need to ask for that forgiveness to be able to not have to pay it off as a loan. Very important.
Dr. Friday 15:42
Because I mean, why would you make it into a payment unless you never used it for the proper information for what it was designed to be used for? Well, then that’s it was a loan. But many people kept people on as employees paid rent, took care of utilities, you know, provided benefits, those kinds of things for their employees. So just making sure that if you are an individual and a lot of individuals, I’m talking to not so much corporations, or LLCs, because many of you have accountants who are individuals that probably help you.
Dr. Friday 16:14
But if you are an individual that you know or a small business owner, maybe you operate as an LLC or a small sub s, but theoretically or small business, make sure you didn’t let that slip through. And then you end up with, you know, having several $1,000 that you owe to Uncle Sam, even with the lower interest rate, it’s still free is always better than having to pay anything.
Dr. Friday 16:38
So if you have a question, if you’ve done if you’ve got some sort of sale, a lot of times we’ve had a lot of real estate sales, I don’t think I’ve done so many real estate sales in the history in the given year for clients. Many 1031 exchanges, many people selling their primary homes, all of those have different tax consequences.
Dr. Friday 16:58
If you have questions on that, if you’ve inherited something you’re not sure about the tax liability, you can call the show at 615-737-9986. Taking your phone calls, talking about all things taxes, but some of the things that come along with that are obviously, you know, how you deal with the different situations that are happening right now, I mean, many people are working two jobs, for example. And we found a number of people ending up owing money last year, because of having double jobs. And when you have multiple jobs, it’s especially the W4 form.
Dr. Friday 17:40
I am far from an expert on W fours. But I can tell you this in most cases that people have multiple jobs, it does not make enough money out to actually help with dealing with, you know, the tax code. I know a lot of people, you know, they because if you’re working two jobs, and that second job, especially if you’re single, and the second job puts you over the $50,000, you’re going to see a big jump, ordinary income tax goes from 12 to 22 as soon as you go over $50,000.
Dr. Friday 18:12
So it’s the kind of situation where you want to make sure that you have the right amount of money, no one wants to have to write another check. You’re already working two jobs. Now you have to write a check on top of it because you didn’t pay enough taxes with the two jobs. And that same thing happens with husbands and wives sometimes when someone has a part-time or small job and then the other person has a full-time job sometimes not enough comes out of the smaller job. All right, let’s get David in Springfield. Hey, Dave, what’s happening?
Caller 18:40
Hey, how are you?
Dr. Friday 18:42
I am awesome. Thanks for calling.
Caller 18:44
I’ve got a question. I was a renter, up until two years ago, bought my principal residence. And now I’m looking at selling and won’t be buying for a while. So I’ve had it for two years as a principal residence gonna have a gain on it.
Dr. Friday 19:01
Can you ballpark what your gain is going to be, and what do you expect to see the difference between what you paid for it?
Caller 19:05
Probably 100,000.
Dr. Friday 19:08
Okay, so the good news I have for you as long as it’s over two years in the last five and you didn’t have another home so I know you didn’t flip another home earlier than that. You will have up to 250 gain above what you paid for it to pay zero tax and you do not have to reinvest ever.
Caller 19:27
Okay. Thank you for your help.
Dr. Friday 19:28
Thank you for calling. I appreciate it. All right. That’s a great question. I always love it when people prep that kind of question because sometimes, and I will tell you I again under right now with the way the real estate it may balance out now but for a while, they’re in early 2021 or mid-2021.
Dr. Friday 19:47
We have people that have purchased their homes 20 years ago for 150 and were selling them for you know, like a million dollars. And you know, the 500,000 wasn’t meeting the criteria. Even for married couples, and in some cases, you know, they live there so long they lost their spouse, they didn’t get a step up and basis for the portion but still ended up with having to pay tax on their primary home.
Dr. Friday 20:12
And I just want to reiterate, that we are working under the tax law that gives a $250,000 exclusion to individuals and a $500,000 exclusion to married couples that have both lived in that home two out of the last five years. So we do not have to reinvest the money. And that’s the important part. Because before this tax law, prior one was you had 24 months to reinvest the money into another primary home.
Dr. Friday 20:39
So that way, we don’t have to deal, that’s not the current tax law, so many of you. And you know, right now, it’s probably a good idea to think I always just, I don’t know, where you’re going to relocate to, in some cases is nice not to be a homeowner, I’m sure, especially if you’re thinking of relocating at some point, or just, your job may take you in and out of town. And it’s not a viable concept. But in other cases, if you basically want to move from one home to another, it just seems to me that you’re going unless you don’t want your home.
Dr. Friday 21:09
But you know, if you like it, and you sell it, and then you need to go buy another one and the same or like-kind situation, you’re gonna pay what you sold it for. Right? I mean, so the home that you now pay 200,000, now you sold for 400, you’re going to paint 400 for your new home. So not necessarily a step in the right direction, in my opinion, but it is what it is with inflation. And none of us are very surprised.
Dr. Friday 21:33
I know Hank Parrott who is my financial guy, he has a TV show on News Five Plus, on Friday mornings, and we do it quite often. And one of the things we’ve been talking about for the last I don’t know, four years, at least probably as how inflation had been held back, we know inflation is going to be coming, we will be looking probably at double digits. We didn’t know when because we don’t have a mirror ball.
Dr. Friday 21:59
But I would say we’re pretty spot on at this point. Inflation has definitely come. It’s definitely feeling it’s every time I put petrol in my car, because, you know, I mean, when you’re talking $4.35, for regular gas, and almost $5 For my diesel, it is not cheap, especially when you drive bigger vehicles. So maybe the trick is maybe they’re looking for all of us to look for cars that would downsize. So we might all go towards electric vehicles. I am not an avid person for that not saying there’s anything wrong with it.
Dr. Friday 22:30
I just, I mean, places in California have until 2032, I believe, to get rid of or they’re not going to make or allow any new gasoline cars to be sold, I think in the state. But they’re having blackouts now with electricity. So I really don’t understand how having everybody in an electric car is going to solve that problem. Unless I’m missing something, again, not my expertise, but I will say they are certainly heading in that direction, headed out towards a Lynnville this morning, a cute little town of the 65.
Dr. Friday 23:04
And you go through downtown or Columbia for all the guys there on my side of town. And there’s I mean, there’s huge cell and battery factories going up. So that’s what kind of triggered that in my head. I’m like, “Wow, we’re definitely going to have some interesting future going here, at least in the Tennessee area,” see if they actually going to have good electric cars come out or if this is just regular batteries. Curiosity for some of us that just see the buildings going up. And they’re massively huge buildings.
Dr. Friday 23:36
All right. So if you have questions, we’re going to talk a little bit about a few of the things we should probably be looking for preparing. We’re halfway through the 2022 tax year, we’re getting ready to make our second quarterly estimate here on the 15th of June. So we want to basically make sure that we have an idea.
Dr. Friday 23:54
Keep in mind tax law says four equal payments, or 100% of what you owe or 110% of the year before whatever is the best number obviously, not only giving too much money but not owing money at the end is obviously the ideal situation.
Dr. Friday 24:11
So we just want to be able to move forward, and we’ll talk a little bit about some of those things we could probably look out for a start preparing for 2022. We’re going to take our second break. You can certainly join us here live in-studio at 615-737-9986. We’ll be right back with the Dr. Friday show.
Dr. Friday 24:42
All righty. We are back here live radio, I guess anyways, I’m Dr. Friday, and we’re gonna go right to the phone because Marsha was nice enough to call. Hey, Marsha, what’s happening?
Caller 24:56
Hi, Dr. Friday. I was just listening to you on the way home from a trip. And remember this letter that I had, I received a 5071 C letter about identity. And I had received either this same letter or a similar one last year or the year before, kept trying to call and finally got someone on the line.
Caller 25:24
And they said that these are just randomly sent out from time to time. There really wasn’t any identity theft or anything like that. So now I get another one. My husband and I filed our taxes jointly, we filed our taxes on time, and we paid. And I’m wondering why I have to do this?
Dr. Friday 25:46
Well, I know I’ve only got one. And mine was about three years ago. And I always thought it was funny because, “Come on, it’s got my fingerprints on file,” but they don’t know it’s me, I guess. So the bottom line is they are in, and I’ve seen a lot of these. I mean, it’s pretty sad when I actually know what a 507 is. And a lot of people are getting, I think they’re trying to find a way to stop identity theft; there’s a lot of identity theft in the IRS. Right?
Dr. Friday 26:14
And so I agree with you, I don’t believe that this means that you’ve had identity theft, I think that the system is just randomly pulling out and trying to get people to verify but I would find it odd that you verified two years ago or whatever. And now you’re having to verify again. Now, when you did it the last time, did they have you go through the whole verification system, where you were able to go through and verify your identity? Or did you just talk to someone about the letter itself?
Caller 26:44
I just talked to someone. I may have given them the numbers from my last few tax returns. I know I had that ready. This time, this letter says if you prefer to talk with a representative call, which I did, but every time I call, they say the volume of calls is so high that they can’t.
Dr. Friday 27:05
That’s the problem. I mean, that’s the problem we’re having with the IRS, period; they seem to have this wonderful concept to send out notifications. But whenever the phone number is being called, there’s no way of getting through. And that’s even on our side.
Dr. Friday 27:18
I would suggest one thing if you try I mean, I don’t know your opinion. But if you go on and do the ID.me and get an account with the IRS, they put you through the identity thing anyways. And that way, then you would probably be identified automatically. And you know, because it’s tied to our social security number and all of that. It’s a suggestion.
Caller 27:41
I have an account with the IRS. And I know how to do this, and you go through the identity verification, but I was just kind of reading through it. And it was getting into something like I needed to send a picture. And I just wasn’t comfortable doing all of that.
Dr. Friday 27:58
Yeah. And then and I have a large number of clients that are not comfortable doing that, to be quite honest. And so your second is, I believe the IRS in Nashville, at least is open for appointments. A second alternative might be just to do a face-to-face. And you know, I mean, at some point, see if you can make an appointment, and just go there and go ahead and bring your birth certificate and whatever they say you need to bring and see if they can get you verified, you know, again, you know, in that way, then it hopefully.
Dr. Friday 28:29
I mean, again, I wouldn’t imagine people need to be doing this every few years; there’d be no reason for that. Once they have you verified, they should know that you are verified unless they see some odd, you know, information going in through your tax program. But again, I don’t find that one has anything really to do with the other. Like you had an identity theft. So they need you to, you know, do something.
Caller 28:51
Right. And I questioned it too, because it’s a joint return and my husband didn’t get a letter, and they already have my money.
Dr. Friday 28:59
I mean, again, but yeah, I have had one case where they held him. I mean, he just couldn’t get through. Finally, with power of attorney, I was able to get him and the revenue officer on the same phone line because they were not processing his last two returns. Whenever they went in there, they just put identity theft, and they didn’t they would not, you know, even though it was his returns, they did not process them. And so it’s held up a lot of maneuvering of money and things overpayments or underpayments kind of thing. So I would just confirm that you’re, you know, even though it’s a pain, I would probably not delay contacting them if you can, and not that you are, but you know what I’m saying.
Caller 29:38
Right. Okay, thank you. I appreciate your help.
Dr. Friday 29:41
Hey, no problem. Thanks, sweetheart. All right. And we are talking here live in the studio. So if you’ve got a question, give me a call at 615-737-9986. I will reiterate that what Marsha was talking about the 5071, I think it’s a C; quite a few of you guys have received those letters.
Dr. Friday 30:09
Again, I received one a few years ago sounds like Marshalls received a few years ago and again now, and I do believe it’s a system they’re trying to come up with as a way of verifying people to be able to stop identity theft, just not that we’ve had any identity theft against us personally, but the system itself somehow doing something but anyway, you look at it, you want to make sure that somehow your identity now I do know that you can get a pin, I believe, I know I have one, the IRS will provide you with a pin number that you can put in on your tax return.
Dr. Friday 30:48
So that way, no one else can file a tax return without the six-digit pin that the IRS has assigned a new one every single year to you. It’s a little bit more work, kind of a pain, and some people don’t even realize they have it until I contact them, and they’re like, “Wait, we didn’t ask for a pin,” but they somehow got signed up because of identity theft. So it is something that you want to make sure it may be a direction, Marsha; you could think of going once you get this resolved; maybe if you sign up for the pin, then they won’t be bugging you every few years about your identity.
Dr. Friday 31:18
Let’s get to Melissa. Hello Melissa, what’s happening?
Caller 31:23
Hey, my call is similar to the other lady about the identity thing, they hit me with that about three years ago, and I went through the whole process, and they said I wasn’t me. And so then COVID hit right about the time I got to the point where they said that I just needed to come in person. And the last thing they told me in person was that I needed to bring everything from that previous year.
Caller 31:50
Like I had a little pressure washing business and cleaning some houses and stuff and I have like paper receipts none of it was in the computer because it wasn’t a big operation. And we had a flood that apartment flooded, and it ruined everything. So I was trying to figure out how to get my stuff back together, and Ben COVID hit. They have not let me file taxes last three years. I just heard you tell her the best option might be going to the national location if they’re taking appointments now?
Dr. Friday 32:19
That’s my understanding they are taking appointments now, you know back to being in business for face-to-face I don’t know how far out. But that would be again, in these kinds of situations, that might be the best situation because in your case, stimulus hasn’t come to you because they don’t know what to you they’ve probably held off you know everything because they’re not processing. So you know, and if you did have a flood in, you have paperwork showing there was a flood, you can do the recreation to the best of your ability and not have to have necessarily the original receipts there are ways around that kind of situations.
Caller 33:01
That’s what I was worried about if I didn’t have any of that. Will I be able to get the stimulus even though like?
Dr. Friday 33:08
The stimulus is still available to you. It’s still out there. The stimulus basically is on the 20 and 21 tax returns I mean, as far as getting the monies, so you should be able to win, you know, in the 19 may have been the year that you because that’s when COVID started, we were filing 19’s. So that’s there that you need to get resolved so that way.
Dr. Friday 33:28
And like I said the one client I had that’s exactly what happened he kind of didn’t let me know there was a letter kind of blew it off he tried to call the number, but you know as the middle of it was 19 as well as the middle of COVID No one’s answering the phones long story short you lived it as well, and so it took us until pretty much the early 21 maybe mid 21 that we finally got someone on the phone that we were able to have him answered the questions and write him verified so that they would process 19 and 20 so he was then able to go into you know get 21 was the first year we can e file and not have something even his transcript still said identity theft.
Caller 34:10
For me is that I was able to get through within a few months of the first one, but they said that I didn’t pass it. And then I was able to get through again about a month ago finally and she again said it wasn’t me, and I know that these questions are asking I know that they’re the right answers like I know that they are. I’m just gonna have to go in.
Dr. Friday 34:31
And that’s where you know sometimes technology I hate to say this but technology isn’t always our friend, I mean you know so my suggestion we’d like I said I know the Nashville I don’t know if your Nashville, Memphis or whatever most of my listeners are in the Nashville area. So if you’re in the Nashville area, the one downtown Broadway is like I said, I don’t know how far out, but you can Google the phone number I know it starts with 615-250, but I don’t know the rest of it. But see if you can’t just make an appointment so you could go talk to someone and then prove you are who you are and get that off your IRS records, right.? So you can start filing taxes again, but thanks for the call.
Caller 35:08
Thank you so much, have a great day.
Dr. Friday 35:11
Hey, you too. All right, we’re gonna take a quick break here, our last break. So if you’ve been holding your breath, and you’re like, “Oh, I’ve got a question!” Well, this will be the time to think about calling the office; the number here in-studio will be 615-737-9986. We’re gonna take your call, we know it’s kind of a crazy day out there. But the identity theft thing is tricky.
Dr. Friday 35:39
But I will tell you, for any of you, I mean, with power of attorney, it’s something that we can help you with. If you hit a brick wall, and you’re just not getting through and you need some assistance. It’s what we do. So you can also give us a call Monday or whatever.
Dr. Friday 35:54
And we can always get power of attorney in and help you out with getting you connected with somebody to hopefully get your information right now. I won’t say with Melissa, she’s tried twice. And they keep telling them she’s not who she is. That will be a little different situation. But we’re gonna be right back with the Dr. Friday show.
Dr. Friday 36:14
All right, we’re back here live in the studio. And if you want to join us you can we have about five or six minutes, at least left. 615-737-9986. We’re going to go right to Steve. Hey, Steve, what’s happening?
Caller 36:31
Thanks for taking my call. We sold an investment property last year. And I didn’t realize that that put us over the income limit. So we went back, we went back and redid a re characterization from the ROTH and changed it over to an RIA. I did all that before April 15th; I thought everything was squared away. So I filed my taxes and everything. And then I got [inaudible].
Dr. Friday 37:13
The balance on the 50, 5498, whatever, those are gonna be as of 1231. But the tax law allows us to go through tax day, which is April 18. So those will not reflect.
Caller 37:26
Okay, so wait till next year?
Dr. Friday 37:29
Right, but that the IRS allows us to do it up till tax day. So it’s very confusing. And they do everything on a calendar year. So but you’re required as long as it happened before or on the day of April the 18th or earlier, you are fine for the year of 2021.
Caller 37:50
What about the form that the IRS…
Dr. Friday 37:55
The 8606 for the re-characterized. The one where they charge you a penalty? You may have got the penalty because you re-characterized it before the end of the tax season.
Caller 38:09
This is from the investment company. They sent me the form for the IRS.
Dr. Friday 38:16
Yeah, that’s fine. That’s just given a balance. You’re talking about the 5400. I don’t know the exact number, but that’s just giving the ballots but that’s as of 1231. You don’t need to worry about that, Steve; you’re fine.
Caller 38:30
Okay. All right. I appreciate it.
Dr. Friday 38:33
No worried. Thanks, mate. All right, so we’re gonna be a few more minutes here. 615-737-9986 here live in studio. So if you’ve got a question, you’re driving around on this beautiful Saturday, may I point out, it’s a day that you want to be outside, not probably, well, most of you guys are probably in your car, thank goodness, and you’re listening.
Dr. Friday 39:00
But if you aren’t, you should go outside and enjoy a little of the sunlight. Probably go play in the dirt as I have been. But if you have questions, you know, again, as an enrolled agent, I’ve been doing this for a lot of years now. I think we’ve hit plus 20. And we’ve been doing the radio now for over 13 years, I believe.
Dr. Friday 39:21
And so I have to thank all of you guys for listening to many of you for most of that time period. But it’s one of the things that, you know, what I make a living doing and what I love to do, as you guys probably figured out, is dealing with the IRS, dealing with taxes. It’s a constantly moving, changing situation, and no two tax returns, in all honesty, are exactly the same. You know, different people, different situations. And what may work for one person isn’t always going to work for the other person.
Dr. Friday 39:49
So always making sure that we have the information, making sure that we do the best we can as far as getting you or the clients the information to the best of our ability as fast as possible. And for any of you that are tax people and want to join me, and many of us other Enrolled Agents, or just people, I mean, many people that come are just tax experts. But as it’s the Tennessee Association for Enrolled Agents, so you can get your CE credits as well. This is happening July 14, and 15th in Mount Juliet; we’re going to have awesome speakers, we’re going to be talking about all the things that mean, we can do some case studies even.
Dr. Friday 40:28
But most will be, you know, one nice thing we haven’t been able to do the last couple of years, is really compare notes with other experts. I mean, you know, these meetings, many times we meet people that are experts at something we’re not. For example, I don’t do international tax returns, I don’t do very, very rarely will I even complete a nonresidential 1040. But I have clients or have other experts in the field that that’s what they do a lot of. So, you know, getting the right person to do the taxes, getting the right person to do what you need to be done is really, really important, and making sure that that is the direction you want to go. And you know, all of that is just vital.
Dr. Friday 41:14
So if you have questions, or you need help with doing that, or you know, even if I am not the person to do the work for you, it is a there is someone that can be the right person. It’s kind of like finding the right attorney or right accountant, you need to find the one that expert in your specialties. But what we do all the time is help people basically get back on track with the IRS. And I know there’s a lot of advertisements out there, “Oh, they can do it for 10 cents on the dollar,” we save people hundreds of 1000s of dollars.
Dr. Friday 41:47
Sure, I can tell you stories anyone could tell you that’s in the business that has saved someone hundreds of 1000s, you know, hundreds of 1000s of dollars on one case alone. But the fact is that everyday offering compromise isn’t going to probably always be that way. Do you need to understand what does the IRS look at? Do you have a retirement account? Do you have a home with equity in it? Do you have the ability to pay, but you just don’t have or want to take the equity out of your house, you don’t want to have to take money from your, you know, from your 401 K or, you know, retirement.
Dr. Friday 42:23
But you know, the fact is to get a deal with the IRS, you need to be talking to someone when you’re at rock bottom. You know, when you don’t have any money, you don’t own a house, you don’t have equity in something. Those are the people that we can make every day of the week get, you to know, get a deal because the IRS has no place to go.
Dr. Friday 42:43
But the every day working hard-working American that has put money into a house or has equity in a farm or some other business or something like that. It’s not going to be that black and white. I’m not saying you can’t make a deal, but you’re probably not going to get 10 cents on the dollar. So understanding what the IRS is looking at, making sure you understand how they value-wise or give you the value of the information that you have bank accounts.
Dr. Friday 43:12
You know, it can be as simple as you have children and those children have done really well with saving money. But guess what your name is on those bank accounts. The IRS can take the money from their accounts; I’ve had it happen with some of my clients. No one thinks about that. But if you are behind anything that your name is on, one of the reasons I am a firm believer in having power of attorney, but don’t put your name on your parent’s bank accounts, don’t put your name on your kids.
Dr. Friday 43:39
Now sometimes, you don’t always have a choice. If they’re minors, they have usually have somebody’s name, an adult name, on a bank account. But as soon as they don’t need that, then my suggestion is to remove your name from anything like that, especially if you have tax issues or if you have other financial issues. You don’t want somebody to make money from your children that isn’t yours. And then they apply it to your debt. So very important. The same thing. I have many people that have older parents, and the first thing the parents one is, “why don’t you put your name on the bank account” or you know, you may even suggest that to your parents, thinking, “this is a great idea.”
Dr. Friday 44:19
But even if you don’t have IRS debt, gosh forbid that you end up in a lawsuit or divorce. Guess what? That bank account that has your name on it. Nine times out of 10 could be pulled into those cases as money you have access, therefore, your money. So who would want you to you know, take money from your mom, not or dad that you had no intention of doing now being brought into a lawsuit or divorce or an IRS issue because your name is on that account? There are ways of having your name in case of an emergency, but not to have it just there when you have the ability. Anytime you can get in and out of anyone’s bank account.
Dr. Friday 44:57
The IRS is going to look at that as if you have had the ability to move money in or out of that account to your personal accounts. So these are the kinds of things you really need to understand. And you don’t want to intermingle your money with other people’s. If you’re in these situations, it’s that simple.
Dr. Friday 45:15
You want to make sure that the money that you have is in your name, and only your bank account and no one else has access. So that way, when you’re dealing with the IRS. They don’t try to bring in bank accounts or other assets that are not yours. They’re someone else’s, but they’re looking at them like they’re yours because of the way the name or the signature cards are listed on those statements. So this can be retirement accounts for mainly I see it on bank accounts.
Dr. Friday 45:43
All right, so if you need help, you want to give us a call Monday morning at 615-367-0819 You can also email me at friday@drfridaycom. So friday@drfridaycom. You can also check us out on the web. It’s drfriday.com, really easy. Check us out. You can get my information and my location.
Dr. Friday 46:19
I hope you guys are having a totally awesome Saturday. Don’t spend too much time in the sun but get a little time out there and enjoy what you’re doing. And hopefully, you guys will listen next Saturday at two o’clock. Call you later.