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In this episode of the Dr. Friday Radio Show, Dr. Friday addresses tax extensions for those impacted by Tropical Storm Helene, tax planning, and ways to manage unexpected IRS debts. She also discusses end-of-year gift ideas for clients, unique holiday plans, and shares a few personal anecdotes. This episode is packed with helpful tax tips and guidance for listeners navigating IRS and estate issues.
Topics Covered:
- Tropical Storm Helene Tax Extensions: Extended deadlines for Tennessee residents impacted by the storm.
- Voting Reminder: Importance of voting and early voting benefits.
- Tax Payment Plans: Steps for negotiating and maintaining affordable IRS payment plans.
- IRS Collection Hardship Options: Non-collectable status for those facing severe financial challenges.
- Estate Management: Tax considerations for inherited assets and stocks, including capital gains.
- Gift Ideas for Clients: Unique, personalized holiday gifts, featuring Lolita Roasters coffee.
- IRS 1099-K Changes: New transaction thresholds for 2024 and 2025.
- Avoiding Tax Scams: Recognizing fake IRS or sheriff calls.
- Energy Credits Update: IRS energy credit regulations and required PIN numbers for 2025.
Transcript
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 Doctor Friday show.
If you have a question for Dr. Friday, call her now. 737 W.WTN. That’s 7379986.
So here’s your host, Financial Counselor, and Tax Consultant, Dr. Friday.
Gooday, I’m Dr. Friday, and the doctor is in the house, and we’re here on this wonderful Saturday to take questions concerning taxes.
I did want to start the show talking.
I had a person that sent me a question asking about the fact that they were affected by the Tropical Storm Helene in Tennessee, and they were not able to make the October 15th deadline.
If you were affected by the storm, we are under an additional extension only for the people that fit into those storm areas.
And they have until May 1st, 2025, that applies to your quarterlies, that applies to your final payments.
So that would be April 15th, April, January 15th, April 15th, the 25th.
The deadline applies to quarterly payroll and excise taxes that might have been due on October 31st or January or April.
In addition to penalties and excise deposits that were done after September 26, 24, that might have been due after that due date.
There are waivers and extended state circumstances, but you do need to be in the true affected area.
It’s not the entire state getting this waiver.
So in the case of this particular individual that was hit, there’s no question you have time, probably not to be worrying about taxes as much as other issues.
So if you have something like that that may have come up, there is, like I said, there is an additional extension for individuals that were affected directly or in the area of where that happened.
Then you’ll be able to, and this will be for companies as well, businesses, payroll taxes, things like that that might have been due.
you will be able to apply for penalty waivers if that was a situation. So if you’ve got questions on that, you can always call our firm. But if you’ve got questions today, you can give us a call at 615-737-99-86. 615-737-99-86. This morning I was out and I was able to do my part. I voted. Hopefully, anyone that’s listening that’s kind of on the fence that maybe you haven’t.
I don’t really care which way you vote.
I just want everyone to vote.
Your vote counts.
So just put your two cents out there, do what you feel is best for you and what you believe.
And then that way we have a really good turnout in there for a good election.
So again, time to get out and vote.
It was a great day at the Springville, Spring Hill Library.
And so a lot of good people.
and everyone was doing their thing.
So it was cool.
So anyways, we’re getting close to that deadline.
So just putting that out there in case you’re thinking, I think early voting only have a few more days left.
So it’s a lot easier under the early voting versus, you know, trying to get there on the day of the election.
But I have some friends that do it every time, right?
It’s almost like a tradition.
They always go vote on the day of the election.
It’s just something they do.
But, you know, everyone’s got their own thing.
So if you want to join the show, talk about tax.
That’s what I am, an enrolled agent licensed by the Internal Revenue Service to do taxes and representation, which means I can prepare taxes, but mostly I can represent you in case you have tax questions or a tax issue. Possibly you owe the IRS and you’re not too sure which way you need to be going. Maybe you just need to get as simple as a payment plan going. You know, and again, if it’s, if you owe $50,000 or less, a payment plan is a fairly straightforward. You can even do them on the IRS.gov website.
If it goes over 50,000 that you totally owe for back tax issues, then you will have a little bit more 433 that you’ll need to complete a financial statement so they can find out how much you can afford to do.
And just a point of interest, do not set up a payment plan that you can’t afford to do.
A lot of times I’ll have people and say, well, I set it up, but I couldn’t afford it.
If you can’t afford it, you need to go through the process of renegotiating the payment plan.
and then after you’ve already defunct on one payment plan, it’s harder to reestablish that.
You kind of burned a bridge there that was a pretty straightforward situation.
So your best thing, in my personal opinion, is, you know, if when you’re studying at the payment plan, they say it’s $300 a month and you know there’s no possible way you’re going to be able to make it, you either need to have a conversation on why, because obviously you’re going to Starbucks or paying for things that are not, not part of your essential life, that needs to be readjusted, right?
You need to make the IRS your priority.
That’s fine.
But if it’s where, you know, I’m barely making my mortgage and putting petrol in the car and, you know, I’m already using a food bank to basically pay for half of my food bill, then, you know, you’re in a situation where it is possibly a non-collectable situation where the IRS can’t collect from somebody that’s in a hardship already.
They don’t want to.
I mean, to be honest.
Yes, their job is to collect the money we owe them, but they also have rules and regulations they have to follow.
And that is a very strict one.
So you don’t want to, if you’re in a situation where you’re barely making it.
And, you know, it’s kind of a snowball effect, right?
Because especially if you’re an entrepreneur or a self-employed individual where your taxes aren’t coming out on your W-2 and you’re living off every dollar coming in the house just to make things meet, that means 25% of that money.
is kind of Uncle Sam’s for most self-employed.
So you’re going to a situation where you’re not going to be able to pay the government.
And so, you know, you either have to consider getting a second job, getting a job that’s a W-2 so that the money’s coming out.
Therefore, you can’t live off money that’s not really yours.
Or you have to figure out a way to make the payments.
And sometimes it’s just that things have gotten behind, a car simply as a car breaking down, something happening, air conditioner going out in the house.
I mean, any of those things can lead you into thousands of dollars worth of unexpected repairs, and therefore you’re chasing, you know, catching up with the government.
And I can’t tell you how many times people have told me, well, I’m just, I borrowed the money, but I’m going to make it up next quarter because I know, you know, I’ve got all these things lined up.
And then unfortunately, you know, life happens.
So you have to be able to tell the government that, but there is ways of making your, yourself either non-collectable, making a partial payment plan, or obviously establishing a payment plan, or even go into an offer and compromise. Or, you know, in some cases, people, I mean, people listening, I have referred you to bankruptcy because bankruptcy is a way of removing not only debts that you may have accumulated due to life, but also the IRS. IRS can be taken into bankruptcy after 33 months of collections. So you can’t do anything for basically, the last three years you’ve owed them, but if you owe them for the last eight, ten years, and every year you’ve owed them, it may be better to go bankrupt than concentrate on this, but even that requires you starting with today. What can I do to start making this stop?
I don’t care what happened in the past. That’s the way I’ve always approached this.
What can we do? Can we start making monthly payments to the IRS for this year, for 2024, not for prior years? Whatever happened in the past, happened in the past, we can’t change it.
What we can see is if can we start getting in the habit of taking our share of tax dollars paying it out.
So there is processes that we can work through and figure out where that money is going to come from.
So if you need help and understanding how to do that, what the rules are and where you need to move forward, then you need to set an appointment at my office.
But if you’ve got a question, because maybe something has happened this year where either you’ve gotten a bonus, a lot of times there’s real estate sales or enhance.
that has triggered possible taxable situations.
I had someone email me just recently asking me that is all life insurance tax free.
And the answer is no.
I mean, probably in most things, can you say, is everything this?
But, you know, I mean, if you cancel out your own life insurance, for example, any growth that’s happened is taxable to you.
If it’s an inherited but paid by a company in some cases and the company deducted that expense, in some cases that life insurance becomes taxable to the receiver.
Normally in normal situations, I will say if you have life insurance and you’ve been paying it out of your own pocket and something happens to you and you leave it to your spouse or children or whatever, that life insurance is usually completely tax-free. Some people have a life insurance tied to annuities. And most of the time annuities are not tax-free because, I mean, normally you put the money in tax-free or after-tax, and then it grows. And then when they start cashing out the annuity, there is taxes involved. So, you know, it just depends on where the life insurance is paid from, how you received it, and who’s paying it out. So just don’t assume that if you have a situation with an inheritance or anything else, that it’s going to be tax-free. Again, I talk a lot about the step-up and basis with real estate, for example.
But if you inherited this property prior to, so I’ve had a situation right now, we’re trying to work with the IRS on because the person’s parents quick claim the house to them prior to death.
And then there was a question, did they have the ability to sell the house?
therefore it was, there was still a basis for a step-up and basis.
If your parents have quick-claimed the house to you, it doesn’t make a difference if they have a life estate.
At that point, the basis steps at the time that that happens.
So you do not want quick-claimed houses, okay?
I know people are trying to preserve their situation, but the IRS is pretty much coming down and saying, Now, if it was quick claimed into an estate, and then obviously at that point, the estate was managing it or something along those lines, that’s fine.
But if your mom has just quick claimed her house to you, you’ve eliminated possibly the look back if she makes it five years prior to doing Medicare or something.
But you’ve also eliminated a very good tax deduction.
So you may end up paying tax on that home when it’s sold later.
There are ways and documents and things that can be done.
I don’t know anything about preserving the Medicare side.
I’ll be honest, it’s not my expertise.
But on the tax side, there are ways of your parents leaving you a house or protecting that house against other family members or something like that that they’re concerned with.
But it’s not something that you want to just do yourself.
So often they just go down.
They do their own quick claim for a dollar, which means.
means your basis is a dollar. It’s, it’s crazy. So make sure if you’ve got a family member or a parent or somebody that wants to do that or has done that, that you find there are ways of us, they’ll preserve it at least their original investment, but it takes some work. So if you’ve got questions, you can join the radio show.
615-737-9986. 615737-9986. We’ll be right back with the Dr. Friday show.
All right, we are back here live in studio.
This is the Doctor Friday show.
You can join us live at 615-7379986.
Let’s see if Stanley is available to chit-chat.
Hey, Stanley, what’s happening?
Well, I have a very unusual problem.
Okay.
I mail my tax return.
And a week later, in my mailbox, I got two 1099s that were stapled to the front of the return.
So now I’m like, well, what happened to the rest of it?
Did the IRS get it or not?
And how would I ever go about finding that out?
And then I’m thinking, well, the other thing, too, I could do is I could just send another copy of the return.
and but I just wondered if there was a way I could find out at this point if the IRS got it or not and if they did get it, how many pieces did they get or what are they lacking?
Right. Well, I will be honest. If it was within a week, the likelihoodness of the IRS being able to open and then return that to you is pretty much rare.
I mean, it usually takes them 21 days to actually process an electronic return, you know?
So a paper return, it sounds like it was somehow damaged and returned by the post office is what it sounds like, maybe missing forms.
But you could always, you have two options.
You could go to IRS.gov and go through the IDME thing, and you can look and see if the IRS has processed your 2023 tax return.
you know, just see, or you can take time and make a phone call and ask them if they have received it.
I’m going to guess the answer is no, but just because of the fast turnaround, if you had said 30 days later, you got it back in the mail, you know, that would be possibility.
But within a week, I really don’t think, Stanley, that that has happened.
Did you owe money or was there a refund or did you have a check attached?
No, I’m getting a refund.
Okay. So you could also go to IRS.gov and just click on where’s my refund and see if there is anything in there. If it says that they don’t have, you know, at this time we can’t locate your return, probably gives you a good idea that they have not. And I would personally just, you don’t have to do originals any longer. So if you’re mailing, I would always keep my originals, make copies and then send, I would send them a whole new copy, signed return. You could put a letter on the front saying this is a second mailing return. You know, know, received the last one back, whatever, just, but since you’re getting a refund, there’s no penalty for filing late, you know, so you’re fine as far as that situation. So I would say, I would personally just refile the return, because if there is a second return, they will send you a letter saying we’ve received a second return, you know, but you haven’t received your refund, haven’t received any communications as of right now. So it sounds like you probably need to just resubmit.
But you can check IRS.gov first if you want.
Yeah, well, I tried to do that.
And I couldn’t get anywhere.
You know, they just said we don’t have any record.
And then I thought, well, if I call the local office, I wonder if they have a way of checking.
I mean, they do.
I mean, you could, if you could actually, any one of them, if they could get it, you know, with your information over the phone, they should be able to check.
But if you’re not seeing it on IRS.gov under where’s my refund?
likelihoodness is there’s no refund being processed.
I didn’t expect them to have done the refund that quickly since it, you know, it just was there a couple weeks ago.
Good point. Good point. Yeah. That is a good point because, but since they’ve already returned it to you and you know you never, the IRS never returns your tax return.
I mean, they don’t send you back your original documents or anything. You know, just in my my opinion, the likelihoodness is that fast of a turnaround, Stanley, that the IRS would not have had time to process. And for whatever reason, there should have been something attached to the front for the reason of the return. We return this tax return because, you know, no signature, you know, was missing vile information. I don’t know. But I’m just saying it doesn’t make sense that the, I think the post office returned it before it ever got to the IRS for whatever reason.
Well, they only returned two pieces out of probably 10.
10 pieces or whatever that.
Yeah, that I had.
And I know it came from there because they still had one of the staples in the corner.
Gotcha.
I wonder if it’s somehow the package got damaged and they found those pieces separate.
Yeah, that’s my expectation that that happened.
And then did they send the rest on or not?
Yeah.
or did it get put into some shredder someplace or unfortunately that one you and I will probably never know the answer to but but I mean again there’s no there is no harm in filing a second copy um okay well that’s good to hear that that’s the easiest way out of this and I guess is just and then that way I would uh I would probably just mail it priority or something not just regular mail just so you have a tracking when they receive it.
okay okay all right thank you thanks boss thanks for right bye bye okay that was a great question and a little unusual but i will say i’m not a huge advocate for mailing any longer heck when i started i can remember such as like april 15th loading everything in my car for all my clients and going to the post office making sure all of them were stamped on time um thank goodness for e5 no longer have to run to the post office.
But I do know some people prefer the mailing, especially mailing the payments.
But I’ve had a number of people, the payments never make it to the IRS.
And a lot of times people just put them in regular envelopes with stamps.
So there is no proof that you actually filed this and sent them this.
And then for there’s penalties and things.
And you can’t argue that you mailed it.
There’s no proof of it.
So unless you’re using a tracking system, like if you mailed it, priority and you have the tracking and say, hey, I mailed it to you, you lost my check, even though I had a revenue officer.
We had the tracking.
Everything was sent out from our office.
And she actually turned around and said, how do we know what was in the envelope?
And I’m like, what am I just to take a picture now of everything going into the envelope before I put it in to make sure you can see I have proof that the check and the envelope are pictured together.
I thought that was crazy, but I have been asked that.
So don’t be surprised if they ask you.
So, you know, I’m just saying your best bet is to track it.
Best bet is to go to IRS.gov and file things electronically, especially the payments.
Because if the payments are made, most of the penalties and things don’t really make a difference because there’s no penalty as long as they have your money in most cases.
So, you know, at least that way, if for some reason the return is lost in the mail, the payment isn’t. But I am an advocate for making sure you pay it. You can even use credit cards if you’re afraid to use your banking information. There’s a fee, I think, two and a half percent or something like that, where there’s no fee if you use your bank account. I have had people that will set up just one bank account. They use solely for the purpose of paying IRS every year. And that’s all they use it for. And so that way they don’t have to worry about, you know, if something gets lost or stolen. It’s from, you know, off their website and off their, their providers.
But everyone’s got their own way of doing it. But I will say that mail, especially anymore, it’s just not the most reliable source of doing your taxes. So that being said, just make sure, if you’re filing them, you send it priority, or you send it FedEx, or you send it some way so you can track it, you know, the government received it. All right. So we all know the holidays are coming, and you’re looking for a really unique holiday gift for your clients.
So this is going to be for businesses like myself.
We’re doing this this year.
And I saw it’s really a cool.
Lolita Roasters is offering this really cool personalized coffee roast.
So they’re taking my company, Dr. Friday, Tax and Financial firm.
And they’re making a coffee based on information, a questionnaire that they had about me, about what I, how I think of my business, what types of things I’m into, what, you know, all, I’m Australian, obviously.
So all these different things, they’re putting it in to this special blend that I’m going to be giving out to my clients.
So some my clients are going to get these cool little boxes that basically have the custom coffee and a thank you card in each box that can be shipped out to a number of our clients.
So I think if you, if you’re looking for something really different and you happen to be a coffee lover, I cannot start my day without a cup of coffee, guys, you guys.
probably know that, especially if you are a client of mine, you know that.
And I think it’s a really unique.
It’s called Lolitaroasters.com.
Again, Lolitaroasters.com.
And they put together, I mean, you know, orders of 25, 50, depending on what you’re, you know, you don’t have to get hundreds of them.
And it’s actually less expensive than what we did for cookies last year.
So I think they’re reasonably rated.
I think the concept is great.
And I think it’s so unique.
It’s got my brand on it, but of something that my clients can use, like coffee, versus sometimes, you know, you get these hats and t-shirts.
We’ve, you know, when you’re been in business almost 30 years, you’ve tried a lot of different things.
So I really think if you’re looking for a really unique concept, and you’ve got a list of clients, real estate agents, you know, I’m thinking accountants, obviously like myself, tax people, Lolita Roasters.
We’ll give you something that you’ve never done before.
We’ll see how this works and what the experience is like, but I think it’s going to be a lot of fun giving people something just a little different.
For all those sweets, now they’ve got the coffee to go with it.
And they’ll think, hey, Dr. Friday came up with this.
So hopefully it’ll be something cool.
All my clients will enjoy as well as it’s just, you know, one of those things that I think are really unique.
So one more time, Lolita Roasters.com is the website.
So if you find them cool, hopefully you’ll be.
enjoy it like I am. So we’re going to take a next break. If you have questions, you can join the show.
615-737-9986. 615 737-9986 is the number here in the studio that you can give us a hauler.
And we will talk about taxes. We will talk about tax planning. Maybe if you were in the middle of the storm, storm damages, what you can maybe do for tax breaks, not only the delay, but maybe also reclassed.
coop some of your losses on your tax return. But any of those questions you might have, you can join the show. 615-737-99-86. We’ll be right back with The Doctor Friday Show.
All righty, we are back here live in studio.
And if you’ve got a question, the show is flying by.
You can join this live here in studio at 615-737-99-866-615-737-97-99-8986.
Back a couple days ago on the 24th, the Internal Revenue passed a new reg.
on energy credits.
And a lot of times people will come in and they’ll say, oh yeah, I brought a new air conditioner.
I had some windows, blah, blah, blah.
So they have $600 per an item qualified properties, 600 total for exterior windows and skylights, 250 for exterior doors, 600 for total interior doors.
And then if you have somebody that came into your house and gave you like a review and saying, you do these things, you can save more in energy, you can get up to $150 if you’ve paid for an energy audit. These are the ones that are basics, right? And then taxpayers may have up to $3,200 with general total of $1,200 with a separate limit of $2,000 for natural gas or heat pumps, electric or natural gas heat pumps. So there’s a couple of these moving. But here’s the big change.
We’ve had that for a little while where you can get a few dollars for, energy efficient. But beginning in 2025, right now, all you really had to do, at least in our office, all you had to do was have a proof that you actually installed the air conditioning system and that it was qualified for the energy credit, right? That the energy efficiency was a part of it. Same thing with doors or skylights. You had to have now in 2025, you will no longer be able to claim the credit unless you receive a pin number from the distributor or the installer.
That number has to be inputted on the tax return to qualify for.
So there’s this new software they’ve got where apparently all the manufacturers will be able to go to the IRS Energy Credit Online portal.
They’ll be registering these installations and then we’ll be able to use those pin numbers to be able to get them off your taxes.
I will tell you if you’re using a small AC company or any of them, not so much that they won’t, but it’s not something, I mean, that’s going to be time consuming on their side.
If it’s a one or two person, now someone who has to go online and register each one of those sales, it’s going to probably be a lot harder to get that PIN number.
So if you are thinking, if you’re planning, I mean, let’s say come January and February, let’s say your heater goes out, and you’re like, okay, well, at least if I replaced the heater, I can take it off on my taxes, it will qualify.
You might want to make a note that you need this PIN number come January of 2025.
Very important.
It is a label that has a PIN number on it that has been provided by the IRS, meaning that it’s been registered with the IRS to be able to qualify.
Otherwise, we will not be able to take those tax deductions and add that additional six or $1,200 to your sign up on that. Also, anyone, I’ve got the number of people here that forget that they have a IPIN number with the IRS when we file taxes. Every year, there’s a six digit pin that the IRS mails to them individually because of normally identity theft.
If you’ve had that situation, I’ve had a couple of people say they never even knew they were part of it, but they are according to the IRS.
So you cannot e-file those taxes unless the PIN number has been received.
The IRS will never call, email, or text you this information.
So if someone calls and says, here’s your PIN number.
It is just hang up the phone.
It is just fake.
But there is on the IRS website, and I would suggest anyone that’s listening.
If you just want to keep up with what’s going on with the IRS, If you want to go to IRS.gov, go ahead and go through.
It’s a little painful.
ID.me.
They’ll ask for you to be in front of a camera and take pictures and do some things.
But they verify your identity.
And then you can go in there and you can see copies of your tax returns.
You can see if there’s any kind of IRS notifications.
You can get all kinds of information from the IRS.
And that way, you know, for example, like Stanley, who called if he was to be able to do, that he can go in there and he can make sure that that information is there. Otherwise, you know, you’re waiting for a love letter and gosh forbid that the IRS has the wrong address. You’ve relocated and even like this, if you’ve moved or, you know, relocated for some reason. And even if you’ve changed your address through the IRS, I have found that sometimes it takes them a year to catch up with you. So it’s just one of those situations where you really just best to be able to go online, Same thing with Social Security Administration.
I have people that call about their different things.
I’m like, go online.
You can usually see that information.
All right.
Let’s hit Mark in Clarksville.
See if I can help him out real quick.
Hey, Mark.
Hey, I love your show.
I’ve been listening to it for years.
I have a 96-year-old mother-in-law that we recently, me and my brother-in-law, he is the executor.
He had to take over her estate because of dementia.
Okay.
We had to have her, but she didn’t tell us about anything about her estate.
Right.
She didn’t tell him or me or my wife or anybody.
And he’s having to, like, go through everything and try to figure it out.
And she has, my late father-in-law, he properly took care of her.
But we don’t know what to do to, like, we don’t want to sell anything for, like, to lose in tax purposes or, you know, to pay him more taxes or anything like that.
I guess my question is she’s got quite a few stocks that she’s had for 30 years that my father-in-law bought back in the 90s that are worth a lot more than what they paid for them.
What is our liability with those?
Well, if you sell them during her lifetime, if we need them to help with her, well, for one, keep in mind that she’s in a dementia facility, I’m assuming, not living on her own, so I’m assuming.
So that’s considered a medical facility.
So the money we’re paying for that, which is four, five, six, ten.
I’ve got people on all kinds, you know, per a month.
Yeah, it’s $7,500 a month, yeah.
Right.
So if we’ve got that coming out, that she doesn’t have that being covered by some sort of long-term care, that her own income is having to support that, selling those stocks, even if we make capital gains, well probably be washed against the medical expense.
But in answer to your question, obviously, I mean, obviously measuring it out so it doesn’t kick her into over, you know, again, I don’t know her her other incomes, but we’d want to make sure that we keep her in the 15% tax bracket, which means under 200,000 all incomes all in, along with her capital gains, which, you know, so you want to make sure that you’re not just kind of cleaning house. There may be some winners and losers, but in her case, if she’s had them all that, even if they’re not making as much as they may have been 10 years ago, she still owned them for so long that there’s capital gains built in all the numbers.
Yeah.
I will say.
Yeah, we have been told that there’s substantial capital gains.
But I was thinking, like, what you’re telling me, that the nursing home or the assisted living care facility, or the memory care facility, that’s what they call it.
I’m sorry.
We should be able to write that off.
So if we have to write off $80,000 a year, we could otherwise we should be able to sell 80,000 of capital gain.
Exactly.
I mean, yeah.
I mean, again, I would I would only hesitate, Mark, on the fact that I don’t know if she has pensions.
I know she has Social Security.
I’m assuming she has Social Security, if nothing else, her husband’s benefits.
And so I don’t know where the other, so someone needs to kind of just figure out where the money’s coming from.
But your thoughts are along the same as I would have, which would be, you know, add up her cost and then that and then see what she she has now if if you inherit there’s a step up in basis and we wouldn’t pay the capital gains so we need to also look at if she has stuff in taxable accounts that would be taxable to you in the estate i’m just going to throw a newty 401k i don’t know her again but you might be better to be taking that money out because we have the medical to offset leaving the stock which is a step up in basis non-taxable to the inherits So there may be some things we need to again, you may not know all of her moving parts yet because you’re having to kind of dig into it and find out.
We’ve been doing this for about a year and we’ve been trying to pick and he keeps finding more like a different account here.
Yeah, that often happens. I mean, I find a lot of my clients will have four or five IRAs instead of just as we get older, we need to remember to merge things together in my opinion because it’s harder on the people that have to help us.
when we have five bank accounts because we open one up for this reason and that reason.
And, you know, but I feel sorry for you on that one, Mark.
But I would just, you know, obviously at some point, you know, obviously considering talking to a tax person, but just like this, but just your thoughts in the right place.
We need to be able to cover our lifestyle.
But if we can do that with truly taxable dollars and preserve any taxable benefits to the beneficiaries, who cares?
I mean, why not do both?
You know, I mean, it’s all win, win, win.
when it comes out okay would you recommend a good estate prepared like an estate attorney or somebody to help us because like I said none of us are really prepared for what we’re you know we understand the value and the amount of money that we’re talking about or anything like that right well do we have a well mark yeah it’s everything basically yeah okay so at least there is a will it’s not it’s not it’s not In test day. Okay. So that’s great. I didn’t know for sure if she had at least. So I would say yes. Ideally, I would find a good estate attorney because if it’s a will, not a trust, it will have to go through probate some of it possibly. I don’t know, again, just winging this. And you’re going to want somebody that, you know, maybe can be in on the front end telling you some of the things that you and I might not know about the law side of things, what we have and don’t have a responsibility to.
the same thing with a tax person, and a lot of times the attorneys will work with them, but a tax person that can also help you with that side of it, because obviously the attorney, some do both, but I mean, normally the attorney does the law, the tax person does, and it sounds like you could end up with a little of both just handling the estate the way it needs to be handled.
All right. I do appreciate you very much, and I love your show every time. I try to listen to it every bed.
Thanks for listening. I appreciate it so much.
stay safe all right and so we’re going to take our last break of the show if you want you can join the show 615 7379986 61579986 will be right back with the doctor friday show all righty we are back here live in studio and we’re here to hopefully get you straightened out as an internal revenue service representative, I should say I don’t represent the Internal Revenue Service. I represent the taxpayers in front of the Internal Revenue Service. And so we do offering compromises.
I have been doing this for more than 30 years. And we are actually local. I know Lance Jerry says he is, but I’ve had more than one case come through me. And apparently he is nationwide or has multiple offices in different places. So just wouldn’t suggest that. But if you want to want to have someone local that you want to deal with. That’s who I am, Dr. Friday, and you can just go on to the web and send me a little questionnaire. Okay, so two things. IRS has announced a delay in the 1099 Ks for the third party platinum for 2023. The plan threshold $5,000 for 24 is phased to implement.
So 2023, again, looks like we may be, we may be delayed not to receive the 1099 case that we, um, We’re expecting initially it was $600.
Then they brought up to $5,000.
It was $20,000 or 200 transactions.
But they will say that they will be receiving if you do over 20 and have over 200 transactions.
So it looks like some of the small business owners that were maybe doing some, you know, little sales through, you know, on ITSE and different things like that.
And you’re using a credit card merchant service that.
that you will not have to worry about it for 2020.
3 is over.
2024, they’re saying it’s going to be $5,000.
And it’s going to be, does it give us a number of transactions?
It says for any threshold, it’ll be $5,000 for the year 2020.
It’s part of the phase out to implement the $600 threshold enacted by the Rescue Act.
They do not have a number of transactions.
So if you have one transaction or multiple, If it’s over 5,000, do expect to receive a merchant 1099K.
One of those situations where you’re going to have.
I did want to share something that happened this week with me where I, you know, I’m always thinking, okay, there’s all these people that kind of fake things and try to basically take things from us, right?
Sometimes they’ll scare people by using the IRS.
I had a phone call from what somebody that said he was a sheriff and that I had missed a meeting.
for jury duty and that I was being fined and that I was going to have to do pay all this money.
And I’m sitting there thinking, oh my gosh, he had my home address, which is not something that’s usually out there.
And he was saying, yes, you know, the sheriff came by, left the notice, blah, blah, blah.
And never doing jury duty, I had no idea.
So for the first time, normally when people…
get the name and number of the person because if it’s collections, sometimes I have had them call, but most of the time that’s not the case.
Dr. Freddie, your internet’s crap.
It’s turned around, or one of my employees turned around and heard me or whatever.
she goes, no, it’s a scam, hang up.
And I did.
And then I called, they were calling from the sheriff’s.
I mean, the phone number on my phone was the same number of the sheriff’s department in my area.
So I’m like, oh, like, you know, so I’m Googling making sure it’s the right phone number.
Finally called and the lady sent me over and said, yeah, this is something that’s going on.
So just beware.
I mean, you know, I mean, again, sometimes we get so focused on doing things in life and then something like that.
I’ve always thought of myself as pretty much, you know, I won’t fall for one of those things.
But I was, yeah, I wasn’t pulling out my credit card or anything.
But I was about ready to go down to the police department and find out what was going on.
And they said, if I went into the police department, I would be arrested.
And I’m like, that doesn’t make sense.
That’s when it started going downhill for me.
Because I’m like, why would they arrest me if I’m paying a fine?
Anyhow, it was really bizarre.
And so I just want to say, you know, hey, beware.
there’s obviously, especially during this time of the year, usually between October and December, a lot more of those kind of phone calls coming out because a lot of times people are distracted.
They’re between working and getting ready for the holidays and all that.
Distraction leads to us to sometimes think of things a little differently, not a tax issue at all.
But I thought it was something that had happened.
And I’m like, wow, if it happened to me, I’m sure there’s other people out there, the same exact thing going on.
Again, never pay.
And if someone tells you you can’t go into a police department and pay, that makes no sense at all.
So at that point, the story fell apart.
But up until then, I’m like, oh, my gosh, did I somehow miss this sheriff coming to the door and dropping off?
And how do they even ask for jury duty?
So I’m Googling all this and trying to figure out because I had never done it.
And of course, afterwards, my employees were cracking up because obviously I didn’t know the process.
So just putting it out there, make sure if someone calls you and they say that there’s one of these, whatever the situation is, if it all feels weird, hang up the phone.
I am pretty sure if it was truly the sheriff’s department.
I can guarantee you if it’s the Internal Revenue Service, you can call back on the local line, ask for that particular agent, find out if that person even exists.
And if it does, they’ll, they’ll, you called the IRS now and they’ll be able to tell you the situation.
about your tax issue or whatever they were calling on in the first place.
So you’re back into control.
And they’re not going to care that you hung up on them because, let’s be honest, you’d rather be safe than talking to somebody that you are not sure was the right person or a good person to be talking about.
All right.
We’re going to be winding down the show for today.
So I appreciate you all for listening.
We also wanted to go through one more time.
It is the holiday season’s coming, guys.
We are almost to Halloween, which, means boom, Thanksgiving.
And after that, we start doing Christmas and the whole fun part of all of that.
And if you’re looking for a unique holiday gift for a client, I am suggesting Lolitaroasters.com.
You can go in there, find out what, you know, they put a personalized coffee for you or for your company.
Maybe you’ve got a wedding coming up and wouldn’t that be cool to have these little customized bags of coffee that people could use?
as a way of remembering.
I don’t know.
I’m just thinking out loud, but for my business, I think it’s a great idea.
Most people are always getting sweets and lots of different things like this.
Why not have a coffee that has my company name, a blend that’s only being done for me, and that makes it so unique and different versus so often people, you know, we just go with some of the traditional things that we do.
So if you’re looking for that, Lolita coffees.com, you can find it.
If you want to get a hold of me, You can call the office on Monday morning 615-367-0819. We’re time to start thinking about 2024. Is anything happened this year? Do we need to be pre-empting any taxes? So by January 15th, you can make that payment that you know you either sold something or you are expecting or you did a conversion, whatever, and you have this expectation. Remember, you’re usually 90 days after the sale of something. We supposed to make it on the following estimates. But, you know, obviously January 15th is the end of the line.
We don’t want to be penalized. So if we have the ability or we need to know, then you need to make an appointment. You can. Again, you can also go to IRS. Oh, goodness gracious. You can also go to DRFriday.com.
I’m promoting the wrong thing. DRFriday.com. Click on the calendar, set up your tax appointment for me or for my assistant. And we can get you in and review.
the information and know what we have going on for for you and get you prepped for um if you’re a new client we need to get you in before the end of the year so that we can make sure we have you all set up so we’re during the busy time of the year we’re not as as concerned you know we’ve already at depreciation schedules in there we’ve already got everything that we need to make it work so we can um you know keep everything good if you’ve got questions you can email Friday at dr Friday.com again Friday at DR Friday.com. Again, I am Dr. Friday. I’m an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. That’s what I do. I’ve been doing it for almost 30 years here. Our office is in Brentwood. So if you want to set up a time, review your past tax issue individual. If you want to set up a time, review your past issue individual, with corporate tax.
We can help you with any of those different tax issues.
It’s really just the matter of getting a hold and getting a handle on where you’re at so that we can move forward and then make things roll a little better.
And then once things are moving in the right direction, you’ll see it.
It’s just like anything else.
You know, you’ll get the system back.
But if you need to set that appointment, you can also, you can call the office at 615-367-0-819.
Or you can just go to DR Friday.com, click on calendar, make up those appointments.
and then if you need assistance with dealing with any of the other tax issues, just give us a call again.
615-367-0819.
We hope that you’re enjoying.
I hope that you’re enjoying this Saturday.
It’s been a pretty good day.
And if you need any tax help, give us a call.
Call you later.