Most taxpayers find that keeping accurate records is a pain in the neck. But failing to keep these records can cost you a tremendous amount of money. That could be true even when it comes to tracking what you’ve spent over the years on home improvements. We’ve run the numbers on the Pendergrafts and discovered that they avoided just fifteen hours of paperwork that cost … [Read more...]
Audits
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Avoid an audit: Fix the 1099 prepaid-rent mismatch
Did you prepay your 2019 rent so you could claim a big 2018 tax deduction? That could be a very smart more. Or it could open the door to huge problems for you and your landlord. You see, if you prepare your 1099-MISC based on your checkbook or payment ledgers, it’s very possible you’ll create an incorrect 1099 for your landlord. And an incorrect 1099 that overstates the … [Read more...]
Hit with IRS penalties? Here’s how to pay $0
If you or your corporation files your tax return late, or fails to pay your taxes on time, you could face big penalties. Naturally, you’d think you’d have to pay them. Not true! When you know how to play the game, and learn which buzzwords to use when talking to the IRS, they will show you mercy and forgive those penalties. What’s the first step you need to take to avoid … [Read more...]
How to defeat IRS penalties
Okay. You made a mistake. You failed to file a tax return or didn’t pay the government what you owed. The result? The IRS hit you with an expensive penalty. Does this mean you’re out of luck and have to fork over a lot of cash? Not necessarily! If you know how to use the IRS’s “first-time abatement procedure,” you can very possibly get the penalty waived. We’ll tell … [Read more...]
How to fight back against IRS penalties
Thinking of taking on the IRS over a penalty they say you have to pay? Maybe you’re intimidated and feel a bit like David did when he went up against Goliath. But take heart. Thanks to the 2nd Circuit Court of Appeals and the Tax Court, you now have a brand new weapon that can help you win your battle. Want to learn how to use it and possibly get even prior penalties … [Read more...]