Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday shares all the latest tax updates, and talks over the following topics:
- Updates On Tax Return Status
- The IRS Is Holding Refunds for EITC
- What To Do If You Haven’t Received Your W2 From Your Employer
- Get Forgiveness For Your PPP Loan
- What Taxes Payments To Make If You’ve Sold Property or Inherited Property
- How To Flip A Home Without Paying Taxes
- Second Quarter Payments Coming Up On June 15, 2021
- What’s The Difference Between EIDL and PPP Loans?
- Do You Need Help With Tax Representation?
- Tax Extensions Expires October 15, 2021
- How To Find Your Stimulus Check
and other caller’s questions!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good day, I’m Dr. Friday and the doctor is live-in house. So if you’ve got questions you can join us today at 615-737-9986 is the number here in the studio, you can give us a call, let you know what’s happening. Probably the biggest thing that’s been happening more than anything is phone calls to my office asking about updates on tax return statuses. You know, once a day, at least you know everything. I have a guy that says, “Every day I check once a day at 6 a.m.” He emailed and said no status change just says that they’re processing.
Dr. Friday 1:11
I am going to say the IRS is holding refunds for the EITC, which is the earned income which some people isn’t always available to them, they may have claimed them in the past, maybe they’re not supposed to. Also, for the EIDL loan or the stimulus money that you may have been requesting. Again, they have to match it up because in some cases, maybe the money was provided to an ex-spouse and was received in cash. In some cases, children that were claimed in one year, and then claimed by another spouse or person in the next year, the person that reclaims in the first year got the money the other person filed on their tax return said they never received the money. So who’s supposed to get it and when? You know, and the IRS is kind of coming back and saying if this happened if for some reason your spouse playing the children.
Dr. Friday 2:07
And some of my clients claim every even year and then their spouse does every odd year. And if you didn’t file your taxes as fast as possible, or even if you have the money came out like on March 12, or 15th was when they started issuing the third stimulus. And then the second one was like December 29, or something like that. So they base them on the prior year. Even though a lot of people think of the second stimulus as a 2021 stimulus, it was still based on 2019 tax returns is still based on 2019 tax returns. And then 2020, which we filed on or before May 17, was then moved on to that section. So it really just comes down to the government’s basically not going to get between husbands and wives or people that have divorced and have children. They’re pretty much coming up straight out saying, “This is the situation, this is how we’re going to deal with it. We’re not going to if the money is already been cashed to provide it to for those children.”
Dr. Friday 3:17
And then I’ve got other people that say, “Yeah, my husband got it, and then I got it again.” So I don’t know how that’s going to come back. If there’s going to be any recourse again, my understanding is the IRS is not going to come back and ask for additional money that is paid to people that didn’t qualify. So if you’re looking for your refund, and if you have earned income credit and/or stimulus money, then I will say that in that case, both of those could be holding up your situation. And then if you’ve had to amend your tax return because of something happening, they’re saying that’s going to take 15 or 16 weeks, even though we can now e-file them to physically get the refund, it can take 15 to 16 weeks to get it back. So just a heads up if you have some questions.
Dr. Friday 4:09
Again, you can join the show at 615-737-9986. We are making sure that you’ve maximized your situation. And I mean 2020 and 2019 tax seasons have been a bit challenging for many people. So just want to make sure that we’re not leaving anyone out there saying, “Oh, I didn’t think I could do this, or I thought that we had some other situations going on.” And then you’re like, “I didn’t know anything about why that happened or anything else.” So if you want to join the show, you’ve got a question. No worries, give me a call at 615-737-9986.
Dr. Friday 4:54
Then of course there was the Federal for extension purposes, because of the storms we had in February. They extended many counties in Tennessee. So some of you that may have not made the tax deadlines on time may still have a window of time that will be able to be extended for those individuals. So if you’re not sure what your deadline is, you can either contact my office or anything else. Of course, the main deadline was May 17. But many people in Williamson County, Davidson, county, etc, actually have until August 2. And that would also extend your money going into an IRA if you were unable to make it on time.
Dr. Friday 5:47
So again, making sure you’ve talked to your tax people, make sure your situation is on the table. So you understand what you may or may not have on that is the best thing to do. And then obviously, another situation I’ve got an email just came in, and they’re asking, “Well, what if I have not yet still received all of my W 2’s?” So at this point, as of January 31, 2021, all prepares or all employers should have already submitted electronically or by paper, their W 2 information to Social Security Administration. So if you haven’t received it yet, I would say you should be able to get tax transcripts from the IRS. The easiest way to do that is irs.gov. Click on “your transcripts” and go ahead and download your information.
Dr. Friday 6:37
I was told by another caller that had called me the other day said that said that you can also look in there and it’ll give you an idea if there is a status update on your returns as well. Any letters in his case, he said that they had tried to contact him about his taxes, and they needed more additional information and there was a letter in there, even though he had not received that letter, it was still in the system for him. So just pointing out, that’s what you might need to make sure that you have or any other situation that’s moving on. So at this point, if you have back tax issues, another issue that you have, you can contact us here if you’ve got questions on it, call 615-737-9986.
Dr. Friday 7:25
But as of May 17, basically, we can now only file 2018, 2019, and 2020. For three years we can file electronically, and then the rest of them will be required to have to be done by mail. So if you’re working on multiple years, you’re going to have some delays in receiving or dealing with tax deadlines on that situation that we have happening. So just you know that information out there.
Dr. Friday 7:55
If you’re trying to establish a new business getting ready to go into a new business, that would be something you’re going to want to make sure you set up either an LLC or a Sub S corporation or C corporation. These are important things to make sure they fit whatever your situation is, for the legal side of it, I always suggest contacting an attorney, but you might want to also talk to an accountant, someone like myself, or if you have a tax person or accountant to see how the taxes franchise excise what’s your availability to what the cost is going to be and, and being prepared for those costs that you have going so that you’re not sitting there when it comes time to at the end of the year to file taxes. And you owe several $1,000 on maybe a partnership or a 1065 and a franchise excise situation because you didn’t know what the rules were. So I’ve had that a few times happen this last year, where people went into a multi-member LLC and did not realize that we had some pretty interesting deadlines on that situation and make sure that that was going to make sure it works and everything’s going in the right direction.
Dr. Friday 9:05
Then also PPP money, guys, that’s pretty much moved on. We all know that we don’t have the actual PPP is done distributing money. But on the other hand, you need to be getting forgiveness. I know I was actually out of the office for last week and I know I’ve received several emails talking about the banks and people are now pushing that forgiveness is open. So you want to make sure the whole purpose of getting the PPP money was to use it properly and then get the forgiveness so it doesn’t become a taxable loan for business owners. It really needs to be basically something that you can actually use, prove that you use it for payroll or for other services that were allowed at least the percentage of it, and then you’re able to move on and do what you need to do at that time. So again, just making sure everything is is good and that your situation is on spec.
Dr. Friday 10:03
So if you want to join the show, you can call 615-737-9986. So we’ll take your calls, talking about my favorite subject. I know it’s a little outside of tax season, but you know what? There is always tax season, it seems like available. And we’re preparing you there for 2021. A lot of people are selling homes, selling multiple devices, to do things. So you want to make sure that if you sold something other than your primary home, most people with their primary home has the availability to be able to, you know, get the waiver of $250,000 for a single person $500,000 for a married couple, you do not need to be. Two out of five years, you don’t have to reinvest the money. That’s the rules, the laws you lived in it to last five years, if you have sold something in the last two years, as the primary home, you really need to go three out of five the second time. But other than that, it’s pretty straightforward. No glitches and so a lot of people are selling primary homes reinvesting the money into other homes, which they don’t have to but you can.
Dr. Friday 11:21
But on that said note, people are selling real estates, like rentals and lands and inherited properties. And you really do need to make sure you understand how that works basis capital gains. And how’s that adjusted to your ordinary income? And what and how do you actually calculate those taxes? So if you’ve got a question if you’ve sold some property, or you’ve inherited property, and they’ve sold that property, making sure that you’ve set aside and remembered, you have basically 90 days from the day you sell it to make proper estimated payment. So you need to make an estimated payment and or pay up to 110% of the year before in total tax payments, you don’t want a penalty. And I usually find especially if people have the plants of reinvesting you don’t want to reinvest the IRS money in your situation.
Dr. Friday 12:11
So you want to make sure that you’ve set them some money and that you’re able to, you know, go do what you need to do. And now that’s working in the right direction. You don’t want IRS in your next project, you need to pay them first unless you did a 1031 Exchange. And we can talk a little bit about that. If you’re looking to flip properties and continue to reinvest in the same kind of real estate. There are ways of doing that without paying taxes. So if you’ve got questions, you can join the show by calling 615-737-9986. We’ll get back to you as soon as this break on the Dr. Friday show.
Dr. Friday 12:55
All right, we are back here live in the studio. And if you want to join the show, all you have to do is pick up the phone and call 615-737-9986. And I think it’s Ellen or Elaine?
Caller 13:14
Elaine.
Dr. Friday 13:15
I’m so sorry, Elaine. My fault. He probably had it spelled correctly. I just didn’t do it. What can I do for you, sweetie?
Caller 13:22
Okay, I have a question. In 2019, we got a letter from the IRS saying that we owed 2000 something bucks for claiming our daughter who was on our income tax until recently, as we claimed the deduction that was allowed for education. She was at the University of Memphis. I sent in the form that Memphis sent me, which showed you know, the payments that we made. Some little wise person there said that that was a scholarship awarded, and they would disqualify me. Well, I sent in a thing showing the monthly payment, the date it was made and all that. And so I’ve been going round and round with them since 2019. Of course, they were closed in 2020. So it’s like, how do I get this solved?
Dr. Friday 14:10
Well, here’s the thing. On the 1098-T. It’s either box one or two it says this is what they’re considering paid for tuition. Not what you paid for room and board, not what you pay for anything else, just tuition. And then like box four or five says “grants or scholarships.” So you have to subtract what’s inbox, and I don’t want to in front of me that says “grants and scholarships” from what’s under tuition. Anything else you paid was for the benefits, but they didn’t consider tuition. So my question would be, even though you sent money every month or whatever to the school, was it really for more room and board? Not tuition, her tuition was covered by the grant and scholarship.
Caller 14:49
It was for her tuition because she had torn her knee and was actually at home during one semester.
Dr. Friday 14:57
Okay, well, then you might need to talk to the college first to say, “Hey, the IRS is saying that I didn’t pay this much money, can you explain?” Because the college is reporting it to the 1098-T. And that’s what the IRS is using, they won’t override that form. And I have a feeling that form is saying that more scholarship or grant was given to your daughter, than what you actually paid for tuition. That’s my guess.
Caller 15:23
Okay. Okay, well, her semester thing is like eight or 10,000, she only got a $5,000 scholarship.
Dr. Friday 15:33
Right. But if you have 5000. Now, let’s say it was 8,000, it would have only been 3000, which would have probably still followed you for the 2,500. Not saying that, but I’m not too sure what the numbers are, may have been that they actually posted her scholarship for the next semester on there, because there’s a box that says “is any of this for the next year?”
Dr. Friday 15:52
And that’s where the mathematics could be wrong as well. Because they may have posted her scholarship, so they could have basically had $10,000 under scholarship, but the tuition was only paid up to the first semester, not the second if that makes sense. So again, pull out the 1098-T and look in those two boxes and see if one is showing if the grant and scholarship are showing more than the tuition. Because that’s what I have felt the IRS has seen.
Caller 16:17
Okay, the scholarship goes on before she ever does the first class. And it goes in in a lump sum and I sprawled out over a monthly payment.
Dr. Friday 16:27
Right. And so they’re saying they were paid for the stuff in advance. So you may have to show that theoretically, that part of the scholarship that was in there, and you may get a letter from the school was actually for the next semester, that started in January, versus the one that was on this. Because there is a box on there that says “is any of this for the next year’s education?” And usually, that box is checked on most people that have scholarships and grants, because like you say, those are deposited in advance of actually doing the courses.
Caller 17:02
Okay.
Dr. Friday 17:03
That was the question. So you probably need to get something maybe by the semester from the school showing how each semester was paid for, for just the schooling, and then submit that and see if it adds up to you actually paying for it sounds like you had to pay. But I’m just saying, making sure that the school posted it the right way, versus pasting all the grants and scholarships in the first front end. And then at the end, she doesn’t have it or whatever.
Dr. Friday 17:31
But that’s where the problem is the 1098-T guarantee you is not showing that, that there was available credit for you to claim. And I’m sure it’s just the timing of when the scholarship was posted. And you should be able to get something from the school saying that part of this scholarship was for 2021, for example, not just 2020 or in your case for 2019. And for 2020. It was applied in advance of and then that way they can apply it roll it over because they’ve got the school to show it. You showing the check there. They don’t know if those checks were for education or for staying on campus.
Caller 18:09
Okay, she was only on campus one semester. And so that wasn’t that year.
Dr. Friday 18:13
Yeah, well, this was Yeah, 19 and 20, which was a bizarre time anyways.
Caller 18:19
Well, we’re talking about 2016 and 2017.
Dr. Friday 18:26
Oh, I thought you said 2019.
Caller 18:30
No, they sent me the letter in 2019 going back to 2016.
Dr. Friday 18:35
Gotcha. Well, either way, hopefully, you still have your documents for that time period. Because you’re going to need to again, you’re going to need to look at those 1098-T’s and make sure that there was enough credit of 2500 or more every year between the tuition and the grants and scholarships.
Caller 18:53
Okay, all right. And because they’re dragging their butt, am I gonna be out of luck if I don’t get this taken care of within five years?
Dr. Friday 19:03
Well, no, I mean, you have an open case at this point. That shouldn’t be a problem. If you can get resolved all the penalties and interest will be gone away. But obviously, you know, they may have closed it, hopefully, your case is still open that they didn’t close it because they didn’t get additional. Even though they weren’t working, so my cases got closed because of the fact that the time limit ran out for them to work with it. But we were able to get them reopened due to COVID in the situation so you should be able to do the same thing.
Caller 19:32
Alright, thank you so much.
Dr. Friday 19:33
Thank you for calling appreciate it. Alrighty, so that being said, again, sometimes guys dealing with the IRS and I mean, I make a living out of this. It is not as simple as everyone likes to think and anyone that’s ever had to deal with the IRS, especially lately and you know. I have some really good friends that work for the IRS. It’s not the people in the IRS as much as it is the IRS in the process of having to try to get to those people and deal with those people, getting someone you can actually talk to, and that knows what’s going on instead of having to be put on hold or to refax, something to somebody that you’ve already talked to about the whole issue.
Dr. Friday 20:15
So, you know, patience is part of it. But the other part is making sure like in that situation that we were just listening to making sure that she can document from the school, in my personal opinion would be from the school, to to the IRS because you know, her issuing checks, the government’s gonna basically say, “Well, how do we know?” We see you paid the school but they don’t know what you are paying for.
Dr. Friday 20:41
So you should be able to and hopefully, you can still go back and get complete detailed transcripts of what courses and how much it costs. And then how much was paid for by scholarship and how much was paid for by checks issued by the parents or whatever. So hopefully, that will be able to be provided still from the school? We’ll find out I guess. So, that being said, and added it there. Oh, well, it looks like I believe we’ve got Ron on the line. Hey, Ron.
Caller 21:11
Hey, just comment here about a 1098-T. You’ve heard from me before I do taxes in Middle Tennessee. But if they’ve got enough intelligence to issue this thing, why cannot they issue that on a cash basis for the year in question?
Dr. Friday 21:35
Well, Ron. Again, you’re in my business. And so that means we would love that because that would eliminate a lot of the problem. Because again, there we’re doing the taxes on a cash basis. And I think that’s going to be what she finds out is that the scholarship money washed out. It looked like there was more money in the account than what she paid. But I mean, the girl apparently got hurt. So that’s a great question. And if we ever get a chance to actually get back to forums with the IRS, we may actually be able to bring that up, Ron, and say, “Why can’t you expect everything else? We do 1099 miscellaneous or NEC’s or any of the rest of them all has to be done on a cash basis. Why is the 1098-T not done on the same process?”
Caller 22:22
Thank you for taking my call.
Dr. Friday 22:24
Thank you. I appreciate you listening, buddy. Thanks. And in that is something we all deal with is the same situation, because that’s what confuses a lot of individuals. Because again, looking at something on the basis that we do things and then something comes in like a 1098-T that can be rolled over into the first quarter or first semester, and they still want us to be able to back it out. And, you know, most people don’t even know if either qualifies or it doesn’t qualify. That’s kind of the way they work with it.
Dr. Friday 22:57
So if you want to join the show, it’s not too hard to do. And if you’ve got a question or an issue, or maybe you’ve got a comment to make, maybe you’ve been dealing with the IRS on something and you might find that other people listening might be able to benefit from your pain and suffering, or just the irritation. Sometimes you can join the show at 615-737-9986. You can join the show and talk about taxes. And again, I know guys, we’ve already I mean, heck already taken a week off, trying to get back on my feet here get organized in our office. Now, back to the normal day-to-day operations. Taxes are pretty much done until we get through till the August time and then September and October with the standard extensions out there.
Dr. Friday 23:42
Don’t forget that we have an estimated payment coming up on June 15. Second-quarter is due on 6/15. So that would be an important day to make sure in all you entrepreneurs, sole proprietors, anyone works off K-1 partners guaranteed wage. Remember, we are responsible for paying our own taxes, and they do want them four equal payments based on the year before. So I’m sorry if 2020 was one of your really bad years, you may want to be using those estimates so that you don’t end up in a tax situation in 2021 because you’re back to work and things are going better in your case. So just remember you need to be paying your quarterly.
Dr. Friday 24:25
All right, we’re gonna take a break here and when we get back we’ll take some more of your calls and some of your emails. You can join us here at 615-737-9986. We’ll be right back with the Dr. Friday show.
Dr. Friday 24:44
All righty. We are back here live in the studio with the Dr. Friday show. I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation. I am not employed by the IRS. I am basically tested as an employee to represent taxpayers in front of the IRS. So if you’ve got questions or you’re trying to deal with the IRS on your own, and you need a little help, I’m the person y’all want to call. Or at least an enrolled agent, someone that has actually studied and done all the testing to make sure that we can do the best we can and help you to represent you.
Dr. Friday 25:18
Alright, let’s hit Jim in Lebanon, who was nice enough to hold through. Hey, Jim, what’s happening?
Caller 25:26
I have a question about the charitable contribution limit based on the Cares 2020 Act. Did it increase the limit for 2020 and 2021?
Dr. Friday 25:39
Well, they increase some of it. I mean, obviously, part of it was the temporary charitable deduction for all taxpayers up to $300. They then took the percentage of it up to, I believe, 60% of your adjusted gross income.
Caller 25:56
It was 60% prior to 2020.
Dr. Friday 25:59
Nope, is 50%. I thought, let me double-check that. It says here, “Cares Act increased the limit to the 60% of your adjusted gross.” It was 50. Before that.
Caller 26:09
Oh, okay. Thank you.
Dr. Friday 26:11
No problem, mate. Thanks. So that’s a great question because some of my clients are some of the best givers that you’ve ever seen. This year, that was probably one of the big changes that happened was the ability to if you did itemize, you took the standard deduction. Still, as a single or married couple, it just was straight across per tax form $300 tax deduction, if you gave to charity, you had to give money to charity, up to $300 that you gave and the standard deduction. So it was a little bit of help.
Dr. Friday 26:52
Obviously, in some ways, if you pay a lot more in taxes, you’re in the 24, 28, or 30% tax bracket, you’re gonna save a little bit more money than a person that’s in the 12% tax bracket. But either way, you look at it, it was a good little boost something extra. I know several people weren’t sure what they’re supposed to do.
Dr. Friday 27:12
Again, if you have filed taxes in the last three years, you may not have received any of the stimulus checks. So, you know, again, if your goal is to eventually get yourself back on track with the IRS, it may be worth the conversation of doing it because you’ve left $3200 theoretically on the table that could go against your back IRS tax issues, or back child support issues. Or if that’s the reason you haven’t filed I’ve had a couple of people walk in. And the reason they didn’t file was that well, let’s be honest, divorce is never a good thing. And sometimes things are done said and happened during that time. And you know, it’s just hard to get back on your feet. So what’s nice about it is is that in this case, you know, if the reason you haven’t filed is that you didn’t want the refunds or to have to deal with the refunds being paid back to back child support, maybe getting those refunds filed, at least for 18, 19 and 20. Get the refunds plus then also qualify yourself for the three stimulus.
Dr. Friday 28:18
Even if theoretically, and I want to clarify this for some people if you had received the check, the first one was $1200. And it could be used for back child support. It could not be used to pay taxes, but that’s physically receiving the check during the time that they did it. If you’ve never received it, and then the second check the $600 could not be used for back child support if you received it from the government. But when you went and put it on your tax return to receive it as part of your 2020 tax return that $1800 now can be used to pay for back taxes, or your current tax bill or child support it now is it there they’re calling it is no longer the stimulus check. It’s basically just a rebate. And they’re using that rebate to pay back.
Dr. Friday 29:14
So if you’re thinking that you’re going to get the money if you apply and you owe back taxes or back child support, and you have a tax return to file it on. I’m going to be quite honest. I know that there is some talk within the IRS and I think there’s maybe a talk about a lawsuit because that money was supposed to be given to the taxpayers without being affected by back tax or back child support issues as just be used to help move money back into the economy and then by them adding it to the tax return. It then became part of the tax due and in many cases, people just applied it to open tax bills for the current year and or being used for back tax issues.
Dr. Friday 29:59
So again, Just want to make sure that people understand that that’s what it’s being said right this second, I mean, they may be changing this, who knows. But right now the best bet for the best way to do it is to make sure that you are able to get your taxes up to date. No one wants to be, I know some people, but personally, I wouldn’t want to be worried about the IRS coming and taking money out of my bank. Or if you’ve been working the same job for more than a couple of years, they can come to your employer and start taking your paycheck. And they can take just about 100% of that paycheck, they don’t care, you have rent or child support or anything else, then they want you to contact them and set up a payment plan. But they can take money out of your bank, they can take money out of almost any kind of asset you have, they can put a lien and or levy against them. So you do want to make sure that you’re complying with this information and making sure that you have everything going in the right direction for that.
Dr. Friday 31:02
So you don’t want to sit around and say, “Well, as long as I haven’t received any letters. So I guess I’m fine.” Because that’s often when people walk in my door, and their bank has received something saying that they’re going to hold their funds or take all their funds. And you’re sitting there going, “How can they do that?” Well, you know, again, any money you put in the bank, the IRS says there’s any money you put into a 401k or even paying your house note. They’re saying, “Well, you’re paying the house note, but you’re not paying us. So we are just as important.”
Dr. Friday 31:32
I’m not saying there isn’t a lot of ways to work with the IRS. There are many, many tools out there for us to use. But the only way those tools can be used is a first get into compliance, which means filing all of the up to date tax returns, if you haven’t filed for 20 years, we may only need to file six years of taxes, it really depends on if the IRS has already filed some tax returns for you that need to be corrected. Otherwise, it may be that we are able to file just the last six years get you up to date, and start making a payment plan. And or an offering compromise, which is where we make a deal. You always hear it on the radio and stuff where it says, “Oh, I owe the government $100,000. And I only had to pay $10” or something like that. It’s not always that simple guys, to be quite honest, been doing this for a long time. And there are great deals out there for some people, but for other people those fields don’t exist. Because you have too many assets, you put too much money aside, either in the equity of a home and or into retirement or you have you know, money in the bank, any of those things could account for why the IRS may not give you 10 cents on the dollar deal.
Dr. Friday 32:39
So really just making sure that you understand what your options are. But the only way it really starts is to sit down, get a hold of the IRS transcripts, find out what you owe and where you owe and what years we need to deal with. If you were in business, did you have a partnership or corporation? Did you owe back payroll taxes? There are quite a few different things that can be out there. And we need to get all of that caught up. So then we know how much we owe the IRS. And then we have the ability to say here are the different options, you either have to get a loan on your house, so you can pay the government off. So they’re no longer in your back pocket.
Dr. Friday 33:18
If you own multiple properties, if you own real estate outside of your primary home, the IRS can theoretically take it. The only home that’s protected under the IRS is your primary home, they cannot take your primary home, but they can take rental they can take land, you know they can make you or they can seize those properties. So again, not trying to scare people, the IRS has many options. But by the time you get to some of these options, you really do need to figure out what’s the next step before the government says here’s the steps you’re going to take because they do have a plan for you. And I guarantee you it’s not a plan that you really want to follow. But it is a plan. And we are here to help make sure that you don’t get to that point where your only option is one option. And it’s not a pretty one.
Dr. Friday 34:04
So again, if you haven’t filed taxes if you haven’t dealt with the IRS because of all kinds of different reasons. It can be health issues, it can be divorce, it can be, you know just life kind of threw you a hardball. It doesn’t make a difference at this point. Starting today, where are you, are you able to get your life back together and start doing what you need to do? And if you’re a self-employed person, and part of the problem is COVID hits you remember and June 2, the administration, the SBA came out and said there is still EIDL money. Now I’m not going to tell someone to go back into debt, even though it’s a good loan, getting a loan on a business that may not have been holding its own in the first place. Not a great idea. So you need to talk to somebody to make sure that you know getting a little help and being able to get back on your feet with a business that was doing very well but then COVID hit and then you know, you were not able to do anything, then that’s part of the problem too. But there are some ways out there.
Dr. Friday 35:08
Now, EIDL is money, that is disaster loans. These are not PPP just to not confuse people, these are actual loans for like three and a half percent over 30 years. So they’re fairly reasonable loans. But again, not for everybody. But if you’re in the restaurant, or venue, or any of those kinds of things that were directly affected by COVID, there are some out there that can help people get back on their feet.
Dr. Friday 35:34
All right, so we’re gonna take a break, here, we come back, what’s gonna be my last break. So if you’ve been waiting and saying, “Hey, I might need to call her,” you can call us live on the radio at 615-737-9986. We’re taking your phone calls, we’re gonna be talking about taxes. Or if you’ve got some other issues with the IRS most likely or state, we can answer those questions and hopefully at least fit you in the right direction, or set up an appointment so we can help you out. Either way, we’ll be right back with the Dr. Friday show.
Dr. Friday 36:19
All right, we are back here live in the studio. And if you need to reach us, this would be the last few minutes of the show. Call 615-737-9986. We are taking your calls, making sure everything is going the way it needs to go, guys. The only way we can get started to move forward is to get started to move forward. So just making sure that you have that ability to, you know, make those choices and do what we need to do. And if you need help on here, call 615-737-9986. We’ll get you right here on the radio and answer your questions as best we can. If I don’t know all the answers, I guarantee you, we can find someone that is able to help us in further that particular situation, whatever it might be that because, without the help, we’re not able to move forward and make the right decisions, right? You don’t know what your options are unless you’ve actually considered all of your options.
Dr. Friday 37:22
So we just want to be able to do that and make sure these options are the best for you be that if it’s a matter of opening a business, closing a business, finding out what the IRS is doing. I can’t tell you how many times I’ve consulted and not been able to, you know a business is not working. Sometimes giving up is never easy. But sometimes it’s the smartest thing to be able to get a resolution and then maybe get back on your feet to be able to do what you want to do and how you want to do it. So it’s just a matter of how we’re going to do it. All right, Robert’s got a great question. I’m seeing it already on the screen here. Let’s see if I can get him to join. Hey, Robert.
Caller 38:04
Hi. When I filed my 2020, my adjusted gross was too high to get the full recovery rebates because I did not get all three. But the problem was it took the IRS eight months to give me my refunds in 2019 to even process the return and there was no additional information needed from me. There were no issues. Actually, I had to get the Haggerty Senator’s office involved for me to get my refund. It was a large one.
Caller 38:37
What my question is, do I have any recourse to try to get the full amount because they delayed giving me a refund for eight months? Otherwise, I would have gotten the full amount.
Dr. Friday 38:49
Yeah, well, I have a couple of them. Because of the fact that they’re, they’re reconciling it on 2020. And in some of my people’s cases, unlike a lot of other people, maybe but so my people made more money in 2020 than they did in 19. And the first two were theoretically based on really your 19 or even 18, the very first one, and they would have qualified but they didn’t for some reason never got any of the checks. You know, I mean, it just didn’t come to them.
Dr. Friday 39:17
So when we had to go back in and claim it actually in 2020, we call it a rebate check at that point. They didn’t get the 100% that they should have been if they had been able to base it on the 18 and or 19 tax returns. And again, I think there’s going to be some possibility of something coming but I don’t know if they’ll ever help us or not Robert, because right now the IRS has basically said if you never received them as the same way if you owe the IRS if you got the checks, you were able to keep them but if you didn’t get them then they kept them from themselves in a sense part of you know, payback or whatever.
Dr. Friday 39:54
It seems to me that there’s a big glitch in the system, but to answer your question at this moment, Robert. No, because if you didn’t get it in the mail, you had to reconcile it on your 2020. And because your 2020 was larger than the minimums was allowed, you weren’t able to get 100% of that money. And it’s also going to affect most likely, I don’t know if he qualified or not for the 14 $100. But it says all three on my screen here, so I’m assuming you got a partial, or you didn’t get any of the last one.
Caller 40:27
No, I didn’t get any of them. So writing the letter won’t help at all?
Dr. Friday 40:31
I don’t believe so. But you know, you can bring it to the attention of the Senators and the Congressmen, because you’re not the only person this has happened to. And, you know, the IRS is pitbulls when it comes to us owing them, but when they owe us It seems to be, “Well, we’ll just pay you interest. But wait, when I owe you, you don’t just give me interest, you make me pay penalties,” for example, right. So it doesn’t seem to work equally on both sides. And now this money coming out, because of the fact that they keep moving the line.
Dr. Friday 41:03
Like I said, initially, these people would have gotten 100%. But and there’s no logic, my people have been filing taxes for 25 years, some of these people so and they haven’t relocated. I mean, there’s no logical reason why they didn’t get them in the mail, like everybody else. So it might be worth writing, I don’t know, to the IRS. But it may be something you could bring to the Senate or Congressmen or someone that you seem to have written to already to work on that. And just bring to the attention that, “Hey, because of these delays, I wasn’t put on the list to issue money. And then now instead of getting it based on the years that they originally issued them under, I made too much money, and I lost another couple $1,000” or whatever, you know?
Dr. Friday 41:46
You’re right.
Dr. Friday 41:47
So it can’t hurt. I’m a firm believer, it doesn’t hurt to ask, what’s the worst they can say? No? But if you never ask them, you’re never gonna get an answer.
Caller 41:57
That’s right. Thank you very much.
Dr. Friday 41:59
Hey, no, thank you. I appreciate you. Great call. I’ve had several people that have told me they have gone to a Congressman or a Senator or somebody to help them with an IRS issue. I have never actually done that. But you know, it doesn’t hurt. They don’t know all the stories. So unless people are willing to put something in writing and send it to the offices of the people that are making these changes and enforcing the laws, then we don’t have any alternative but to sit back and just accept how things are. So kudos to you, Robert, and anyone else that has actually moved past just accepting something as it is, but actually trying to make it move forward and get something more than just the typical answer. We’re working on it.
Dr. Friday 42:45
I mean, the phone numbers to the IRS are very difficult. Sometimes when I get through the phone numbers, the people in there, all they can tell you is the same thing, as the website says, “We’re working on it. “We’ve received the tax return and we’re working on it.” Well, you’ve been working on it now for you know, eight weeks, and it’s supposed to take 21 days. So we’re trying to figure out, it would be great. I mean, I went right on the IRS website this morning, before the show just to see if they had any news or updates. And probably the biggest thing I would send out to anyone that might be listening from the Internal Revenue Service, or work for the IRS, it’d be great if you guys could put better or more news information so we can pass it through our sources to the people. So we actually have more communication, because, at this point, we don’t understand.
Dr. Friday 43:33
And I’ve been doing this a long time. A lot of you guys have been filing and paying taxes for a long time. Why is it taking more than 21 days if we’re e-filing the return? If nothing else, could they not at least send a letter out or some sort of news thing that says, “Hey, anybody that has this situation, expect a longer delay.” Anyone that has this, you know, whatever, so that we can pass that to the people and they aren’t sitting there after 21 days looking at us as they prepare to say, “Hey, where’s my money? I need my money. Where’s it at?” You know, I mean, the whole purpose of getting tax refunds and EIDL’s and all these things is to keep the money so people can pay their rent and do the things they need to do. And that’s what’s kind of missing in this conversation.
Dr. Friday 44:15
All right, so hopefully you guys enjoyed the radio show today. If you have questions, or you need an appointment, you can certainly call my office directly at 615-367-0819 that comes directly to me guys. 615-367-0819 would be the direct number for me. And then if you want to know more about who I am easy enough to do go to the website. Just drriday.com. Find out more about who I am and what I do and why I do it.
Dr. Friday 44:52
And then last but not least, if you are a person that just has a question, maybe you’re dealing with an issue and you need some help or if you need me to try to lead you in the right erection of someone that might be able to help you. I’d be more than glad to do that easiest way to do that is the emailing me at friday@drfriday.com is the easiest way for you guys to get a hold of me especially if you’ve got some questions. And if you send something from like last week, I promise I will be through this weekend I will hopefully have everything caught up so that I can respond and take care of everybody and everything that we need to do you know in the system, but if you need some assistance with something or you need to set up an appointment, you haven’t done your taxes yet.
Dr. Friday 45:40
Now’s the time to think about getting those appointments set up so that we can do whatever we need to do to get the IRS on the right page and get you hopefully moving forward in life and not worrying about if Uncle Sam is going to do something or mess up the plans that you have. So again, you can reach me at 615-367-0819 or you can email friday@drfriday.com or go to the website drfriday.com. Find out who I am what I do.
Dr. Friday 46:14
If you need assistance doing something or help Let me help you try to get back on track and make everything work for you and get your life so you can start living it, guys! Because it’s not much fun if you have to worry every time you do something. I hope you guys are having an awesome Saturday. And as I always like to say, call you later.