An unexpected IRS letter could reveal income reported under your name.
In this episode of the Dr. Friday Radio Show, Dr. Friday, a financial counselor and tax consultant, and answers caller questions. As the tax season is in full swing, Dr. Friday provides valuable insights and advice for listeners.
Topics covered:
In this episode
- Calendar-year partnerships filing Form 1065 and S corporations filing Form 1120S needed to file returns or extensions by March 15.
- Track medical bills you actually paid, subtract insurance reimbursements, and keep records of medical transportation expenses when evaluating whether to itemize
- Keep an estate open until all expected funds arrive, and preserve email and cell phone access for account verification.
- Obtain an appraisal establishing inherited property’s value at the owner’s death, and share that basis documentation with all beneficiaries.
- An IRS offer in compromise requires financial disclosure, and home equity, bank balances, and other assets affect whether a settlement is possible.
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 Dr. Friday Show.
If you have a question for Dr. Friday, call her now, 737-WWTN.
That’s 737-9986.
So here’s your host, financial counselor and tax consultant, Dr. Friday.
G’day, I’m Dr. Friday and the doctor is in the house.
We are going to talk about my favorite subject, it is the middle of tax season.
And if you are a 1065, an 1120S and an 1120, in some cases, some 1120s can have it until
next month.
You have just missed a deadline if you did not file an extension.
Because we’re due on the 15th for all 1065 and 1120Ss, unless you’re on a fiscal year
end.
So you need to make sure that you file your taxes.
The penalties can be pretty steep.
So again, making sure that you have filed your taxes and if not, an extension.
That’s the same goes come April 15th for everything else, unless again, you’re on a physical year
end, makes for you to basically need to file those extensions.
It’s such a time saver, but more it’s a money saver, right?
Because if you haven’t filed your taxes yet, then you’re in trouble when it comes to filing
what you need to file for all of that.
So again, if you have a question, you can reach us here in the studio at 615-737-9986.
615-737-9986 is the number here in the studio.
And many of you are probably working on taxes or maybe even working towards something that’s
happening in 2024.
It’s never too early to start thinking about how you’re going to save tax dollars or preparing
to pay taxes.
I mean, many times I’ve had people inherit property, they sell it for more than the asking
price, or there’s a situation where you decide to relocate and you sell your rental or you
sell your primary home, whatever it might be.
You want to make sure you understand what your capital gains if it’s over a year and
one day, or it could be ordinary income.
If you have people that move into a house and then decide that that wasn’t the right
place and within less than a year, they’ve relocated to another home and they sold that
house, which means that you don’t fall under that exclusion that you get for your primary
home.
Now there are exceptions to that.
There are, if you moved on medical or for work reasons, there is the possibility or
divorce that you could actually get part of that exclusion.
All right.
Let’s go to Ray in Hendersonville and see if we can get someone on the phone here.
Hey Ray, what’s happening?
Well, you have a Larry in Hendersonville.
Okay.
What?
I’m so sorry.
My, my, my mistake.
Typo on my side.
Larry on Hendersonville.
What do you got going?
Well, I had, like I was saying, kind of an intertwined situation to the one who answered
the phone.
And it’s my son is special needs and he gets social security and, but he does live with
us and I’ve, and he has a little job.
So I’ve always filed his tax return separate.
But I do claim them as a dependent because he is disabled.
So when, when this year we had to go on the affordable care act for six months to bridge
insurance for me till I get the Medicare, they wanted all household income, including
his social security, his little job and everything.
And I was just wondering, am I doing wrong since I’m claiming him as a dependent on not
claiming his social security on my income tax return?
Or can I continue to do it that way?
The way that I am?
You can for, for the IRS reasons, unfortunately for the marketplace, that’s a whole different
conversation.
But for the, you are, you have been doing the tax return.
It sounds like correctly.
You would file his taxes as a dependent.
You can check the little box.
I’m a dependent on someone else’s return, put in his social security and his little
W2, get back any withholdings that might exist for him.
And then on yours, cause social security is not considered earnings.
It’s not something that’s going to fall into the child tax or anything.
So answer your question.
Yes.
And under the marketplace, they have a whole different way that they like to calculate.
It’s not just what we might consider taxable income, but as far as taxes, it sounds like
you’ve done a perfect job.
Okay.
I just wanted to make sure that when I did my tax return this year, this is the first
time I’ve ever had to do a 1095, but it wasn’t going to build some sort of flag and say,
Hey, you know, and, and then get, is, uh, is your son carried on the 1095 or was it
just you?
Uh, no, it’s just me.
My son’s being disabled.
He’s on Medicaid and Medicare.
I just wanted to make sure.
Cause sometimes children, I’m the only one on, and that’s just perfect.
So I turned 65 in June.
So, okay, great.
That was a question I needed answered.
Thank you very much.
Thanks.
Appreciate it very much.
Let’s go to Dora, uh, Dory in Nevada.
Hi Dr. Fadde.
Hello there, sweetheart.
Um, okay.
What is the difference between filing head of household versus filing single?
If you’re unmarried and you have no dependents, you don’t really have any tax advantages like
credits or deductions and all.
Can you help me understand that?
Absolutely.
And you know, that’s a great question.
I’m actually glad you, cause a lot of times people don’t know the difference.
So single means that you have no children, nobody that you’re supporting in your house
that you can claim, um, as a dependent.
So you are just, just me.
I’m a single person.
I don’t have anyone else.
I’m single.
You have head of household, which means you have to have a dependent.
It could be a parent.
It could be a child.
It has to be someone that you are supporting more than 50% of their care.
And they’ve lived with you at least six months in one day.
That’s a huge help.
Does that help?
Yeah.
And just so you know, head of household gives you a larger, I mean, head of household is
much better because the standard deduction goes from like 13 to 18,000.
Right.
Yeah.
I was super tempted by head of household, but I also know I might need to slow my roll.
I’ll go with single.
Thank you.
No problem.
Thank you very much.
I have a, in continuation with Dory, you can, you can hang up, but I will say that I have
ran into many of them that I have fallen into a situation where they are married, but the
option of married is married or married filing separately, jointly or separately as your
two options.
But I have found many returns where a spouse claims head of household with the children,
even though you’re legally married, because they get a better return because with married
filing separately, there’s a lot of limitations because the IRS doesn’t know what the spouse
is.
So they don’t know if you’re under earned income credit.
They don’t know anything.
So they don’t allow it where I have found that people have checked the box head of household,
which is completely wrong, completely illegal as far as I’m concerned.
So if you are married, you are legally married.
Now there are certain exceptions.
If you have lived separately for a year from your spouse and you are definitely in the
house taking care of your children, this other person lives in a completely different home
for the year.
Then you might be considered head of household because you are actually separated.
Now the IRS may require a legal separation, but there are exclusions within that for safety
reasons and other things.
So that may be the case.
There’s always an exception, but most people I’ve, I’ve actually had to go back and correct.
They were just married and they just found out that by heading head of household, they
could get a better return instead of being married jointly.
All right, let’s hit Linda and Brentwood real quick.
Hey Linda.
Hello.
Thank you for taking my call.
Sure.
I I’m 73 on social security and have had pretty much had the same tax return for the last
10 years.
So I get an, I get a letter from the IRS asking for a W2 and a W2G for gambling and neither
one of those applies to me.
And I’m, and so I sent them a letter, but to Utah.
So I’m really confused as to why I went over my last five years tax return letter by letter
and I don’t know where they’re getting this or why they’re asking for this information.
Well you handled it correctly, Linda, by providing them saying, I don’t, you know, I don’t have
any W2s or W2Gs to report under me.
My concern will be is either there’s been a typo on a form and somehow someone else’s
social security number is close to yours and they’ve imposed the number and it’s showing
up under you and the IRS is trying to correct it.
Or worse scenario, obviously, and our bigger concern is that somebody has taken your identity
and has worked or gambled under it.
And I wouldn’t jump to that conclusion right off the top, but but what you did was perfect.
And if you get another letter at that time, you may want to either contact, you know,
there’s a number to contact because it sounds like there could be a fraud situation if they
continue to communicate with you.
But the letter should resolve the fact that they’ll be able to see that that was the situation
and that you did the right thing.
But you know, if you get another love letter, then you might want to try to get a human
to confirm because what they might do, Linda, is they might give you a six digit pin.
So when you file your taxes, they know it’s you in case somebody has somehow inadvertently
or advertently took your information and filed under it.
All right, so I should just wait for a response to my letter.
Yes, ma’am.
Wait for a response.
See if anyone, see if it may have resolved the issue.
You may never hear back from them ever again, which is kind of a pain in the neck because
you might be nice to say, hey, thank you for resolving this issue.
That would put a lot more stress or less stress in our lives.
But the fact is, they may say thank you for communicating on this day.
You know, we received your letter and it went and we are resolving the issue.
It may say something very simple like that, but it may not get a letter.
I’ve wrote millions of letters, I swear, over 28 years.
And sometimes we get a nice little response saying that this has resolved the issue or
thank you for communicating.
We’re still working on it.
But I hope that you’ll get something that says something like that.
But if you get another letter saying, hey, we’re either changing your tax return or,
you know, again, we need proof of your W2 and W2G, then I would go the next step.
Either go to the tax advocate office or just call the local IRS office so they can get
something on it because I would say at that point, you may have a need to get a six-digit
pin to protect yourself for the future.
You don’t want someone working under your ID number.
>> Yes.
>> So, you’re in a holding cycle.
You’re having to wait until the IRS gets back.
>> They’re questioning my refund.
And so, would that trigger anything?
>> So you were questioning your refund or they were?
>> Well, they were.
They’re questioning my refund, which was a little bit more than I received last year.
But I don’t know what precipitated this letter and what’s different.
But yeah, they said they might have to amend my return or blah, blah, blah.
>> Okay.
So it sounds like something is under your name, to be quite honest.
What they’re telling you is that they may actually have to change your return.
We’re changing your refund.
So your next best bet would be is to, you sent the letter.
If you get another letter saying they’re changing it, you’re going to want to call the IRS and
talk to them because it sounds like they have some information of a W2G or a W2 that was
turned in under your name.
And that’s why they’re saying that your return and theirs isn’t matching.
>> So you mentioned a tax advocate.
How do I find one?
You can do you have access to the IRS like a Google or anything?
Do you have internet?
>> Yes.
Yeah.
>> Okay.
If you could just text under Google, you could put in, I’m assuming you’re in Tennessee.
So, you know, Nashville Tax Advocate Office, and they’ll give you a phone number and a
fax number.
>> All right.
All right.
Well, thank you for your information.
I appreciate you taking my call.
>> No problem.
Thank you, Linda.
All right.
We’re going to take our first break.
You can make more of your phone calls at 615-737-9986.
All righty.
We are back here live in studio.
And you can join us if you have a question at 615-737-9986.
615-737-9986.
Now’s the time that we’re talking about.
Well, we seem to talk about it year round, but obviously it is what we call tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
And we’re going to talk about tax season.
So, if you are an employed individual,
you’ve started an LLC or some sort of entity,
not a sole proprietorship,
but anything that has partners or shareholders,
that you do have to file a form now with the foreign entity,
I guess you would say, foreign banking industry.
There is a website for it.
So you’re going to want to make sure that you are in compliance.
And making sure that you have the freedom of information act is going to
be part of it.
But basically you’re going to have this information that you need to be
filing. And if it’s an older company, you have until, and I say,
older something that opened up in 22 or early 23 or whatever,
then you have until January of 2025.
But if you’ve just opened up this information to be in compliance and
everything, then you need to go ahead and do that.
Now I think you have 60 days to actually file after the date of the comp of
your company. And you want to just go to it’s called O O I B O I
beneficial ownership information act is what it is.
And the reason I keep talking about this, and I know I talk about it a lot,
it’s under the foreign banking because the penalty,
if you don’t meet this is $500 a day for not being in compliance.
It’s one of the steepest penalties I’ve seen.
I’m sure there’s some other ones in this part of the world, but you know,
so if you, if you’re not sure you can certainly contact our office,
but you can also look it up as fed it’s under the financial crime
enforcement network.
And it is something that needs to be filed.
There are a few things that are exempted,
certain things like credit unions, insurance companies, accounting firms,
some of them are exempt.
So if you’re under the exemption and there’s a whole list of them and
inactive entity is one of those, but if you don’t fall under that,
then you do need to file the form. So again, if you need,
you have questions, you can always call our office. All right,
let’s hit Ricky and Mount pleasant Mount pleasant. I like that town. Hey,
Ricky.
Yes, ma’am. How you doing?
I’m good.
Good. Good. Quick question for you. I was calling from my grandson.
He is legally still married, but they had been separated,
live in the park for over a year. Now, how would he file?
I want his income taxes.
Legally he can file as single or head of household.
If there’s a child that he can legally claim.
Okay. There’s no children involved. Just him.
So he can just go back to being single.
It’s it’s a little easier because at that point, you know, he,
he is, he’s basically single. He’s just waiting for the divorce.
And sometimes nowadays, you know, between the system and the finances,
it takes a little longer for people to get legally divorced. But yes,
he is legally on the 10th tax side. He could file single if he wanted to.
Okay. All right. I appreciate the info. And thank you. No problem.
Appreciate that. Thank you very much. Thanks. I appreciate you. All right.
So if you’ve got a question again, you can join the show at 6 1 5 7 3 7 9 9 8 6 6 1 5 7 3 7 9 9 8 6,
taking your calls, talking about my favorite subject, which is taxes.
There are so many exceptions to the exceptions that, you know, just keep in mind.
If you are an individual and you have a specific tax situation,
you need to talk to a tax expert. I’m giving you some outlines,
but you need to make sure that if you have a serious or you’re getting love letters or you’re,
you know, you’re dealing with something,
make sure you consult with a tax expert, preferably an enrolled agency,
PA, someone that has the credentials to make, not only prepare,
but also represent you in front of the IRS.
Cause it’s important that you have a shield.
You need somebody that’s going to help you do something other than just, you know,
prepare taxes, not put their name on a tax return. Come on guys.
Who would prepare a tax return and not put their P10 and their name on it,
unless they’re basically saying, Hey, I’m doing this,
but I’m not taking any responsibility. I’m not dealing with anything.
And that is not what you’re paying for. You’re paying for someone to do taxes,
but to also be there when the question of something happens or anything else,
it’s just a matter of making sure you’ve got the right information and that
you’re doing it. You know, I mean, otherwise, you know,
you might as well just throw a bunch of numbers on a paper and hope that it’s
sticks. It seems a little crazy to me. Okay.
We’re going to try to hit Sue before the break.
So let’s go ahead and get Sue right on the line so she doesn’t have to hold.
Hey Sue.
Thank you. I hope you can answer that.
What do I need to be getting together with hospital visits and also a
skilled care this past year?
Right. So obviously you need to get together all the money you have paid out
of pocket. If you, do you have longterm care for your husband?
Yes.
Or just met. Okay.
Turn in papers for that also what they’ve paid out.
Okay. So obviously what they’ve paid out,
we get to deduct from what you’ve had to pay because they’ve provided that
money to offset, but you need to track all of his, you know,
if he’s been in a home or just the hospital,
if he’s had to have home care or all of, you know, and also the trips,
you driving back and forth to the hospital or going and picking up his
prescriptions or taking him to see physicians,
all those miles can be added in at a 20 cents or something,
a mile situation. But I would be tracking,
just start an envelope if nothing else and writing on it, you know,
how much you write a check for,
and then keep a copy of that because sometimes the paperwork comes in and
initially it just says how much you owe and then the insurance comes in and it
gets reduced, you know, from what the original amounts are,
but that you need to put all that. Cause you probably,
if it’s anything like some of my clients, you may be able to itemize.
Okay. And I guess sometimes I’ve had someone pick him up like in a
wheelchair to take in their van. So that would be part of that also.
Absolutely. Yes, ma’am.
Anything and everything it’s taken to get your husband or keep your husband
moving alive.
Okay. You’ve been a big help. I enjoy your show. Thank you so much.
I appreciate you, sweetie. Good luck. All right,
we’re going to take our next break. You can reach us here in the studio at
615-737-9986.
615-737-9986. We’ll be right back.
[inaudible]
Alrighty. We are back here live in studio.
We’re about halfway through the show.
So if you’ve been holding your breath trying to figure out what we’re going to
talk about, well, what you’re going to ask a question about.
I kind of know what I’m going to talk about.
Then you can actually give us a call here at 615-737-9986.
615-737-9986.
So I got another text through the break here and I just want to talk about
again, if you are married,
but it says who can be considered unmarried.
And if you have paid the biggest part of this is lived apart from your spouse
during the entire six months of the tax year. I’ve always made it a year.
I don’t know why.
And that means the spouse is considered to still live with you if they are
incarcerated military or under some sort of educational travel or something.
But if you have lived apart,
maintained your own home for six months or more, again,
I’ve always went with a year. I don’t know why.
Something I had read back in the day. So you can qualify.
You set the prove that you have been living separate and taking care of
yourself in that situation. So you might want to consider that,
but many cases that’s not always the situation. And then, you know,
head of household, you can claim many different people.
Sometimes people are like, well,
I thought you can only claim a minor child for head of household.
And that is not true. I mean,
I have a number of clients that their parents actually either live with them or
they pay for the facility in which their parents are living.
So they’re providing more than 50% of that person’s care.
So they qualify as a dependent in some cases,
the only income some parents have is only social security and it’s not enough
to take care of themselves or be put in a facility for that. So, you know,
you have to deal with that situation. So again, if you have a question,
you can join us here. 615-737-9986.
615-737-9986.
Let’s go right to the phone and hit Sherry in Nashville. Hey,
Sherry what’s happening?
Yes.
My mother passed away and we had a trust for her and we have officially
closed the trust now. Do we need to file income tax on that?
Well, yes. Trust,
you would have gotten a separate federal ID number or federal employee ID
number, EIN number. And so to close that number,
you would need to file a 1041 may not have any taxes due,
but you would need to file. And if there was any interest, dividend stocks,
you know, anything that was in the name of the trust, including a home sale,
if it all went through the trust,
some kinds of people get it directly to their names.
But if anything that was in the trust that may have generated income,
theoretically,
it either needs to be a K one that passes through to the beneficiaries or the
trust itself needs to pay the taxes.
Okay. And that form to file with him is a 10?
1041.
41. Okay.
1041. Yes.
I appreciate that.
No problem. If you need help, just give our office a call. Thanks.
All right. So if you’ve got additional questions again, that is actually,
we do a number of trust our states depending on if they were actually,
both of them will end up with a federal ID number,
but treat it a little differently, obviously,
because in a state it’s usually opened up by the courts.
When someone has a well, and then the state has to be opened up versus a
trust, which is usually established prior to us passing away.
Either way, there is tax returns that need to be filed.
And they are annual. Sometimes they’re not on calendar years.
They’re usually based a year after the, you know,
every year from the date they were open extensions are available.
And in the perfect world, we’re able to close them from a year after that,
but sometimes they’re not.
Perfect world. We’re able to close them from a year after that.
But sometimes we have annuities or real estate or different things that we
don’t have any control over to actually establish. So you,
you need to make sure you keep it open.
We have one that’s just being kept open now for almost a year and a half
because the tax refund hasn’t come in yet.
So we’re still waiting for the refund because the check is going to be in the
name of the estate or the parent’s name, whatever. And therefore we can’t,
we can’t do that. So you just need to make sure you don’t close that.
Estate before you have received everything you need to.
Another hint we deal with a large number of estates in different situations.
And I will tell you, make sure you don’t close email addresses.
If you have access to their email and their cell phones, keep the cell phones,
don’t immediately just shut everything down because you’re trying to close it
all off.
Because a lot of times if you’re trying to get into websites or different
things,
they’re going to send that code to the cell phone because that’s the code they
have on file.
And otherwise you’ll have to get everything through the courts.
And that can be very difficult to be quite honest.
I’ve not had to do it that way,
but I have seen estates that have been held up for a number of years
actually, because information has been so slow to be able to go out.
And so again, just make sure, you know,
if you’re handling a parent’s situation that I mean,
some of them are extremely simple, really.
All they have was their, their social security, didn’t have anything else.
That’s a, doesn’t really require an estate or anything else.
But if your parents did have homes residents,
and if the home was not left in a trust,
then you usually have to go to probate,
get the home put into the estate or into the individual beneficiaries that
then can sell the home. And then it would report an individual.
Usually under each person. And again, if you’re over the estate,
one of the nicest things you can do is if there is anything that is being
sold in the names of the beneficiaries is to have an appraisal that you
then can hand out and say, this is the number we’re using for basis,
because when someone passes away and we inherit that property,
we get a step up in basis. So whatever the house was worth, for example,
and let’s just say mom passed away last May,
whatever the house was worth last May, and you just sold the house.
Now you may have sold it for more. You may have sold it for less.
Most importantly,
you just want to make sure that it’s a break even in the perfect world.
We don’t usually care to claim a lot of losses on something like that,
but we do not really want to pay taxes,
but I’ve had a couple of them where mom’s house turned into commercial
property after she passed away.
Therefore we ended up with a huge capital gains because during her lifetime,
it was a residence.
So things happen and making sure that you have good documentation,
because if you’ve got four or five beneficiaries,
you need to be able to provide information to all of them so they can do their
taxes or provide K ones if there is an estate. So again,
if you’re not sure how that all works,
you’re going to want to make sure you had to go to an accountant,
a CEA like myself, or, you know, if you have an attorney working with you,
many of them handle that, that information as well.
Just make sure they understand the tax law and your obligation.
But if you have questions again, it is already the 16th of March.
We’re getting down to the last four weeks of tax season.
I know our office has pretty much been booked for a while.
I’m sorry about that for anyone that was hoping to get a new, a new person.
We just, we just aren’t big enough to take on the,
the numbers that have come through our door. So if you, if you need help,
you can still, we can still file extensions and help you after the April 15th.
But if you need to get your taxes done before that,
then you can always go to EA that’s
enrolledagent.com.
And there is other listings of enrolled agents out there that can maybe help
you closer to your area.
Cause I have to appreciate my clients that will travel quite a ways just to,
to come to me. So again,
if you have questions as an enrolled agent for any of you that might be new
and you’re not too sure, I keep saying EA and enrolled agent.
And enrolled agent is licensed by the internal revenue service to do taxes and
representation, which just means guys, I do taxes all the time. I’m tested.
I’m continuously educating myself far from perfect,
but I probably the most I know about anything is taxes.
So if there’s a situation where I have the, the, the tax is that’s,
you know what we have going and you have to deal with that.
So as an enrolled agent,
I’ve licensed by the internal to represent and to do tax preparation.
So if you need help and you need to be able to get some assistance,
you’ve received love letters,
or you’re just not too sure how to move forward because sometimes you’ve gotten
behind and that’s all you can do about it. So you know,
making it work for you and having it that way is all we can do to, to,
to do, but you really want someone that is licensed.
That’s someone that’s going to be able to help you when, and if maybe never,
but when, and if,
if a love letter does come in and you’re able to help you do that.
So if you need help with that,
you can always call my office or if you’ve got a question,
you can join the show. 6 1 5 7 3 7 9 9 8 6 6 1 5 7 3 7 9 9 8 6.
Many of you guys probably have heard my puppy dog barking in the background,
but she wasn’t happy with being put outside. She wasn’t about being inside.
Well, you know, when they’re a great day and that’s a pretty big voice.
So she’s a, she’s settling down now. So anyway,
so if you have a question, we’ll take a quick break, but when we get back,
we can get to the phone lines again. 6 1 5 7 3 7 9 9 8 6 6 1 5 7 3 7 9 9 8 6.
Again, I can’t say enough that if you aren’t ready to file your taxes,
it’s still the absolute best thing for you to do is to prepare yourself an
extension.
It’s that you can go to the irs.gov and look under forms and you can file it
right there online, I believe. And, you know,
you can make sure that you have the ability to take a breath, you know,
and do what you need to do.
As far as filing your taxes,
it’s just one of those situations that you really do need to make sure you are
at least protecting yourself the best you can there. Yeah.
46 48 68 and they are available to be filed online.
So extensions are there for you. So you can, you know,
file it right on the IRS website and make it work. All right.
We’ll take our third break and we get back. We’ll finish out the show.
You can reach us at 6 1 5 7 3 7 9 9 8 6. We’ll be right back.
Alrighty. We are back live here in studio for the last little bit here.
So if you’ve been waiting to call, now’s the time to do it. Guys.
6 1 5 7 3 7 9 9 8 6 6 1 5 7 3 7 9 9 8 6 making a,
this our wonderful Saturday. It’s beautiful outside guys.
And I just had my little baby just come in and just chilling.
Now always a little late for that.
Come things you’d wait to come into the office after the fact. So anyways,
if you want to join the show, 6 1 5 7 3 7 9 9 8 6.
So I got a call or a text during the break.
And it just asked again about the beneficial ownership information report
that has to be filed. And again, there is a small business situation.
So some people may be small business entities and this,
it does have all the directions and everything on it.
And you can just type in F I N C E N.gov.
That’s the website that you’ll be going to.
And then they will explain if you are required to file, like I said,
there are some exceptions,
but most of them seem to be something that’s basically falls under licensing.
So they already have some of the information.
It is something you don’t want to put on the back burner.
As far as I’m concerned, I’d rather be filing. In fact,
I realized that my company was exempt, but I went ahead and filed.
Anyways, I don’t want them coming back later and saying, Oh wait, you know,
you should have done this. And then I have a very large fine,
not something I want to be dealing with. So,
and I have no idea if they’re waiving any of those penalties because we have
enough troubles trying to waive penalties just when it comes to love letters
from the IRS. And I know this week,
we’ve been dealing with a couple of unique situations with it comes to
payroll taxes. I had one that we just received a letter on,
and none of us had any prior communication, even though the letters always say,
well, we’ve told you about this before.
I know many of you have had the same situation,
but this was from a nine 41 from 2011.
I didn’t even know to be quite honest,
I didn’t realize the IRS could go back that far. I get it.
Fiduciary situations where it’s payroll taxes and as employers,
we have responsibility, but I real,
I didn’t realize they could actually just come out of the blue.
And we have another one that was to 2017, 18 and 19,
where they had a couple of different issues that came into play and their
numbers didn’t even match the numbers we had.
So we’re dealing with not only correcting that,
but also collections on that as well. So just,
just putting a heads up for anyone that may have done their own payroll in the
past, maybe even use the service that there is some letters.
At first we were thinking that maybe they were frauds,
but we did actually speak to a representative at the IRS.
And these were at least the case I’m dealing with.
These are active true cases. So don’t,
don’t ever ignore the IRS. I mean,
I know it’s kind of a common sense situation,
but I have a number of people that just seem to say, Hey, you know what?
I’m just going to throw my head in the sand and not come up and just deal with
this. Not really the direction we want you to go, right?
We want to be able to take a look,
see if there’s a way of getting resolution.
There are several different types of payments. There’s collection.
There’s obviously non-collectible and you know, again,
everyone wishes to be able to just make a deal.
I probably get a call a week that says, Hey, I owe the IRS, you know,
like a hundred thousand dollars, but I have 50 of it.
Can we just settle for 50 and make it go away? It doesn’t work that way.
You can’t just settle with the IRS. You can make an offer to the IRS,
but they’re going to look. And in these cases, many of them, you know,
they have equity in their home. They have real estate,
not only their primary home, they have assets in the bank.
They just, you know, it’s all I ever owed him was 50. So, you know,
now five years later, you own a hundred.
You don’t really want to pay a whole hundred. Well, I get that.
But the fact is you can afford to pay the IRS,
even if it doesn’t seem like you want to, or you don’t really have the cash,
but you have the assets to afford.
The IRS isn’t just going to settle because you say you don’t have the money to
pay them. Keep in mind, they know that you own real estate.
They know how much money’s in the bank,
or they will get that during the process of this offer. So, you know,
it’s not just something you can deal with that simply is all I’m going to put
out there. You have, there is a process. There is a form, a 433 has to be
completed. It’s like a financial statement. You know,
so just because you have your children in private school,
I have one I’ve been dealing with for a number of years because they,
they trying to get their child through private school before they make a deal
with the IRS. But the IRS is saying private school is a luxury.
It is not something that is mandated.
And theoretically the IRS or the United States treasury is paying for your
child’s school because you’re not paying enough taxes every year.
So these are the kinds of things we have to deal with.
It’s not something you can’t deal with. There is always a process.
I just think that sometimes people just look at their own financials and say,
well, I hear people on the radio all the time.
How many have to pay 10 cents on the dollar?
Why do I have to pay all of it back?
And the plain simple is we’ve gotten people that have only had to pay $25 on
over a hundred thousand dollars, but that’s because they had no assets.
They had no home.
They worked a menial job at the one time situation or they were making money,
but you know, now they’re no longer in that profession.
So they don’t have anything for the IRS to collect against.
And in those situations, a deal can be made.
But if you’ve been a good little steward of your money,
then the IRS is going to have the ability to collect.
And that’s why you often hear people that owe, you know,
five or six or $7,000 and you’re like, I can’t afford to pay it.
I get that. But the IRS does have 10 years to collect.
So they’re not in a rush to make a deal with someone just because they have a
debt right this second.
You know, just because future.
So again, just pointing out that, you know,
there is a process just like preparing taxes,
put the information on the tax return, everything you make,
don’t just use your 1099 K every business, every single business.
I don’t know any of them that probably doesn’t get well, that’s not true.
There are online businesses, but most storefront businesses,
let’s put it that way, receive some form of cash.
So when you come in and say, here’s my 1099 K or here’s all the 1099s I
received. And you are a plumber or you are a roofer.
You’re telling me that you didn’t have any single individual that wrote you a
check or put a cash that you didn’t have.
The IRS is asking the same questions.
I’m not asking anything that they’re not thinking. Right.
So when you come in and say, here’s only my 1099s,
and you happen to be in an industry that may have had some cash or something
else. And again, also lifestyle.
So with those 1099s and of course you turn in every dollar of your expense.
Now you’re showing that you made 30, 40, 50, $60,000.
Yet when you take your mortgage and you’re supporting two kids and a wife,
no one else works. And you know, it doesn’t make sense.
So making sense with your taxes is a big part of what you should be doing
because if you’re sitting and you have a home mortgage for $3,000 a month,
and you’re showing that you make $38,000 a year, that doesn’t make sense.
Now, if you’ve got three roommates and they’re all paying you rent, well,
sure, that would be a viable concept. But if you make, you know, 38,
and mortgage is 36, you can defend yourself and that that’s your gross.
Where’s the tax dollars. So again,
make sure when you’re looking at your taxes and the IRS has a software that
they actually run it through to means test to figure out, you know,
is this a logical dollar amount that this person is making? So, you know,
again, just reporting the proper information,
putting it into the system is very important. All right.
So we’re winding up the show for this Saturday.
I hope everyone is enjoying this Saturday. It’s a beautiful,
especially after all the rain and sort of cold weather we’ve had.
It’s gorgeous out there. So take a few minutes and go out. If you need help,
we can file extensions. We can help you after April 15th at my firm.
We can try our best to answer your questions. You can go to drfriday.com.
That’s the website drfriday.com. You can ask a question through that site.
You can also our phone number 615-367-0819.
615-367-0819 is the number directly to the studio or I’m sorry,
directly to the office.
And that way you can get the information you need trying to help you stay on
track and not get behind on your taxes.
As well as you can always email friday@drfriday.com.
Again, at this busy time of the year,
I will say that we’re slower than we normally are in responding to those
contacts,
but we’re doing our best to try to get back with you as soon as possible.
So if you don’t have your tax documents, you don’t know how to move forward,
maybe you haven’t filed for five or six years happens easily.
Time gets away from us. You know, we can file an extension.
Then we can help you get back on your feet,
try to get the resolution that you need set up a payment plan.
You cannot set up a payment plan until you’re in compliance.
So if you get one love letter, it says you owe money,
but you haven’t filed taxes. Remember, we do have to get you into compliance.
All tax years filed and accepted, then file the payment plan.
Otherwise they will not accept the payment plan to move things forward.
All right. So we’re winding down again.
Phone number 615-367-0819 drfriday.com is the website and friday@drfriday.com
is my email.
Hope you guys enjoy yourself.