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Taxes


Watch our new video to learn the three ways you can get rid of an IRS tax lien!  


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For more information about the services we provide, visit our Home Page! 


Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes
If you are going through a divorce, there are 7 key tax questions you should ask.

What if all of My Tax Returns Have Not Been Filed?


The divorce court will want you to have tax returns filed and up-to-date. There are two reasons for this: to tie up the loose ends, and to provide the financial information needed for alimony and child support calculations. 

Is it better to files returns jointly or separately? In the case of Married Filing Jointly, both you and your spouse are jointly liable for the tax debt, which is frequently a cause for concern in a divorce setting. With this in mind, it may be better to opt for Married Filing Separately, even if that means you must pay some extra taxes now.  Also, keep in mind that you cannot amend a return to switch from Married Filing Joint to Married Filing Separately.

What if you don’t know if your ex-spouse filed all the tax returns? In this case, you can contact the IRS to get your tax transcripts which will show what, if anything, is missing. Transcripts also provide details of 1099’s and W-2’s, which sometimes go missing during a divorce.


How Will the Tax Responsibilities be Divided?


If you file a joint tax return, both spouses are equally responsible for the taxes.   The IRS will go after either party for unpaid taxes. If the divorce decree says that the husband or wife is responsible for the taxes, that is not binding on the IRS. If one spouse claims that they he or she had no knowledge of the income activities of the other spouse, the objecting spouse may request relief under the Innocent Spouse Rules.



What If I Do Not Trust Previously Filed Tax Returns?


If you do not trust the previous filed tax returns, then you can file amended returns, provided that your spouse agrees.


What If I Do Not Trust Our Current Accountant?

Does your accountant play golf with your ex-spouse? If so, you may want to find a new accountant. Look for someone who is independent and will represent your interests.


What If the Tax Returns Show Substantial Tax Debt and Penalties?

It may be time to start negotiating with the IRS for a resolution. Options include Penalty Abatement, Offer-In-Compromise, Installment Agreement, or Currently Not Collectible Status.   


Can I Sell Marital Property That has a Tax Lien on It?

Yes, the IRS will work with you to discharge or subordinate a lien so that you can sell the property pursuant to a divorce. They would rather you be able to sell the house and pay off some or all of your tax debt, rather than leaving you stuck with both unpaid taxes and an unwanted house.



Are There Any Negotiation Points Related to Taxes That I Should Be Aware of When Dealing with My Spouse?


You or your accountant should prepare a tax projection that shows the after-tax cost of several financial matters relating to your divorce. These are:

1. Alimony, which is no longer taxable to the recipient and no longer deductible to the payee. 
2. Who is Going to Claim the Children?   While children no longer provide dependency exemptions, there are child tax credits and earned income credits which need to be considered.  
3. Head of Household Filing Status – You will want to run a projection that shows the after-tax benefit of this filing status post-divorce.

If you need additional answers to your tax-related questions, please give us a call at 678-235-5460.

To watch our YouTube video on this topic, click here!

For more information about the services we provide, visit our Home Page!


Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes

Do you or someone you know need to make a deal with the IRS? Check out our video on the first steps you should take to best negotiate with the IRS!

 
To learn more about the services we provide, visit our Home Page

To watch more of our tax and accounting videos, check out our YouTube Channel!


Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes
If you are an Atlanta taxpayer who owes taxes to the government, you can stop IRS collection activity by being deemed Currently Not Collectible. Once you obtain this status, the IRS will stop sending you nasty letters about your tax debt.  And most importantly, the IRS will not be able to seize your assets.   However, the IRS will file a lien on your property.  This will hurt your credit rating and will make it harder (but not impossible) to sell your property.

In order to be considered not collectible, you will have to provide your financial statements to the IRS.  While there is significant work required to prove that you are not collectible,  the effort is often worth it, given the right facts and circumstances.  Furthermore, there is planning that you can take advantage of to improve your numbers, such as maximizing allowable expenses. 


The Math Behind Being Not Collectible


First, calculate net equity in assets (home, car, investment portfolio, etc.). Second, calculate gross monthly income, less allowable expenses. If these calculations show no funds available to pay the tax, then you will be deemed not collectible. 

You are allowed to use current income numbers for purposes of the calculation. This helps your case if you have recently lost your job or had a recent decrease in earnings (such as during the pandemic).     

It is not a problem to obtain not collectible status if you have “dissipated assets” (assets disposed of in the past several years). However, dissipated assets are a problem if you are applying for an Offer-in-Compromise. 

If banks will not let you borrow against the equity in your assets, that equity may be excluded from the net available equity in assets  calculation. This exception is not allowed in the case of an Offer-in-Compromise.
 


How Long Does Currently Not Collectible Status Last?

It is important to note that Currently Not Collectible status is temporary. The IRS will check in with you every year or two to see if your situation has changed. With that said, the 10-year statute of limitation will continue to run during the period that you are not collectible. With good planning, the statute of limitations may expire while you are not collectible.  If so, the IRS will write-off your tax debt in full, and the tax debt will simply go away. 

If you would like to learn more about how our firm can help represent you before the IRS, visit our Home Page.

Click here to watch our YouTube video on this topic!


Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes
If you are an Atlanta taxpayer with a tax bill you are unable to pay, this article is for you! There are two key steps that you should keep in mind if you have an IRS tax bill you are unable to pay. 

1. Tax Compliance


The IRS will agree to negotiate with you only if you compliant with their rules.   This is referred to as “tax compliance.” Tax compliance relates to both filing tax returns and making tax payments.

The IRS will consider you compliant if the the past 6 years of tax returns have been filed. 

If you are an employee, you are compliant if you pay sufficient taxes through withholding from your paycheck. If you are a business owner, you are compliant if you have paid your required quarterly estimated tax payments.  If your business has payroll taxes, you are compliant if you have made all your payroll tax deposits and filed all of your payroll tax returns throughout the year. 

If you cannot afford to pay your taxes, do not make the mistake of thinking that it would be better to not file at all. If you have not filed your return, the IRS will not negotiate with you.  Additionally, if you do not file the tax return, penalties, plus interest, will be added to your tax bill.  Penalties for missing returns are 5% per month, up to a maximum of 25%.   

Therefore, if you owe taxes for multiple years, we recommend that you pay your most recent tax bill first to show compliance. Then go back and resolve the older tax years with the IRS.

2. Options Available to You


The second step to consider when you are unable to pay a tax bill is to identify which of the available options is best for you. There are generally three options available when dealing with the IRS.  Each option has its own set of requirements

The first option is to get the IRS to considered you “non-collectible.”  This temporarily stops all IRS collection activity until your situation changes or the statute of limitations on your debt expires.

The second option is to request an Installment Agreement.  The terms of the agreement will depend on your facts and circumstances.  

The third option is to make an Offer-In-Compromise.   The offer is always lower the amount of the tax owed – if you qualify.

For more information about the options and resources available to you, give our office a call at 678-235-5460.   If you would like to learn more about the services we provide, visit our Home Page!

To watch our YouTube video on this topic, click here!



Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes
Atlanta taxpayers, if you have missing tax returns, and feel you are due a tax refund, this article is for you!

You have three years (from the date the tax was due) to claim your refund. This means you have until July 15, 2020 to get refunds for 2016 tax returns. Therefore, 2016 tax returns need to be prepared and filed in the next month to secure a refund.



Notice CP516 

The IRS is looking for missing tax returns. The IRS uses Notice CP516 to request a missing tax return. If you receive this letter from the IRS, it means that the IRS knows of your missing return and it needs to be prepared and filed as soon as possible.  

If you do not file missing returns, you are subject to a Failure to File penalty. This penalty is 5% per month, for 5 months-Up to 25% of the tax due. Even if you cannot afford to pay the tax right away, file the tax return as soon as possible to stop the penalties from adding up. 



Substitute for Return

If you fail to file a tax return, the IRS will prepare a return for you. This is called a Substitute for Return. The Substitute for Return is almost always bad for you as it means the highest tax rates, and no deductions or exemptions. In other words, a Substitute for Return generally results in a large, unexpected tax liability. 

 

If you have missing or late tax returns, the best thing you can do is get them prepared and filed as soon as possible. 


If you would like to watch our YouTube video on this topic, click here!

For more information about the tax services we provide, visit our Home Page.


Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.
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Instruction, Taxes

Watch our new video to learn how you can obtain Currently Not Collectible (CNC) status to halt IRS tax collections!



Please feel free to call our office at 678-235-5460 if you have any questions. For more information on personalized help, visit our Home Page.
To watch more of our YouTube Videos, click here!


Massey and Company is a boutique CPA firm in Atlanta, Georgia serving the needs of small businesses and their owners.



Featured image: Photo by Brad Huchteman on Unsplash

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Taxes
If you work out of a home office, this article is for you. There are three key factors that go into getting the home office tax deduction. These are: 1. Determining what qualifies as a home office. 2. Calculating the tax deduction. 3. The type of business you have.

Let’s take a closer look at these components. 

1. What Qualifies as a Home Office? 

For your at-home workspace to be considered a home office, it must be used regularly and exclusively for your business. 

“Regularly” means that the space is used consistently and often. Using the space occasionally, or briefly on an inconsistent basis is not considered regular use. 

“Exclusively” means that this space must serve only as a workspace. Your kitchen, for example, would not qualify, because it is used for purposes other than your business. A desk in the corner of a room is acceptable, but is important to ensure that the space is not used for things other than work.

Essentially, in order to qualify, the home office needs to be the principle place of business. Either you need to spend most of the working day there, or it needs to be the place where you handle all of your administrative and management work. For example, if you are a plumber and drive to jobs throughout the day, you would use this space to handle office matters. 


2. Calculating the Tax Deduction


There are two methods that can be used to calculate the home office tax deduction.
     a. The Ratio Method: this method involves a ratio of the square feet of your office, compared to the square feet of your home, multiplied by utilities, rent, real estate taxes, mortgage interest, telephone, internet, and insurance.

     b. The Simplified Method: with this method, you use $5 per square foot, for up to 300 square feet.

If you are not sure which method is right for you, feel free to call our firm at 678-235-5460 for more information.

3. Type of Business


The final element to consider is the type of business you have. Each of the following business types are eligible for home office tax deductions:
– LLC
– Partnerships (The partners can deduct home office expenses on their personal tax returns).

Owners of S Corporations cannot get this tax deduction because they are considered to be employees. The solution to this is for them to adopt an accountable plan. This way, the owner can be reimbursed tax free and the business takes a deduction for the related expenses. If you are interested in learning more about adopting an accountable plan, give us a call and we can tell you more about it.


To watch our YouTube Video on this topic, click here!

To learn more about our firm, Visit our Homepage


Massey and Company is a boutique CPA firm in Atlanta, Georgia serving the needs of small businesses and their owners.

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Taxes

How Do You Challenge a Tax Bill?

Incorrect tax bills are actually fairly common. Why is this? It is because the IRS is relying on automated systems more and more to deal with taxpayers. For example, 75% of all IRS audits are done by computers. The IRS uses computer systems to create substitutes for tax returns, where they are missing them. As a result of this automation, many Atlanta taxpayers are receiving letters in the mail from the IRS that contain tax bills with incorrect tax amounts.





I hear of folks who write to the IRS about a bad tax assessment, and they experience the frustration of their paperwork getting lost in the system. As a result, bad tax assessments go unchallenged and appeals are not made. Individual taxpayers then find themselves battling with IRS Collections for money that they do not owe. These individuals may even be subject to a tax lien, which makes it nearly impossible to get approved for a mortgage. 

But fear not! There are ways to challenge an IRS tax bill.

1. Request for Audit Reconsideration
   We can get the audit reopened and re-examined.

2. Doubt-as-to-Liability Offer
    This is a type of Offer-in-Compromise that challenges the underlying liability itself.

3. Collection Due Process Hearing (CDP)
    During the hearing, the tax bill can be challenged.

4. Innocent Spouse Relief 
    We ask the IRS to adjust the amount of tax due, by allocating the tax between the spouses or former spouses.

5. File an Amended Return
    If the taxpayer does not receive anything in 6 months, they can bring a litigation suit.

6. Bankruptcy
The issue can be challenged through bankruptcy


Which of these is the right one for you? The answer depends on an analysis of your facts and circumstances. I do this for our clients. If you are facing a tax bill, send me a message to discuss which strategy is right for you.




If you would like to watch our YouTube video on this topic, click here. Feel free to call our office at 678-235-5460 for more information!

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Taxes
 

Your Questions About Economic Impact Payments Answered

The distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

Who is eligible for the economic impact payment?


Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

How will the IRS know where to send my payment?


The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?


In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?


Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

 If you have not yet filed your 2018 and 2019 tax returns, please call our office at 678-235-5460, or shoot me an email at Gary.Massey@MasseyandCompanyCPA.com as soon as possible to ensure that you receive your payment.  

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Taxes

The IRS knows that there are over 7 million individuals and businesses with unfiled tax returns. A significant percentage of that number constitutes taxpayers who have not filed returns for multiple years. The IRS is beginning an initiative to target these “non-filers.”

If you come into our Buckhead CPA firm to resolve the problem of missing tax returns for you or your business, we will be sure to discuss with you three key strategies for non-filers:

1.) How Many Years to File?
– No matter how many years of returns have not been filed, the IRS only requires you to file six years of missing tax returns.

2.) How are You Going to File? – If you can’t afford to pay your back taxes, consider filing separately from your spouse, followed by an Offer in Compromise. This may save you thousands of dollars, depending on your fact pattern.

3.) Where You are Going to File? – Supercharge your Offer in Compromise for back taxes by filing your state returns first. This, too, may save you thousands of dollars, depending on your facts and circumstances.

Unfiled tax returns are an urgent matter. Especially if you want to stay out of trouble with the IRS.

For an appointment, please call our office at 678-235-5460, or send me an email at Gary.Massey@MasseyandCompanyCPA.com.

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Taxes

With the 2019 calendar year coming to a close, the IRS will soon be mailing out tax bills.   Millions of Americans will be surprised to find significant interest and penalties, in addition to their tax debt. 


If this is your first time receiving a penalty from the IRS, Massey and Company CPA can show you how to save time and money.  


We have the experience and the tools to get rid of tax penalties and get you back on track. The IRS will claim you owe them money, but we know how to prove them wrong. Call our office today at 678-235-5460 so we can resolve your IRS problems and save you from handing over your hard-earned money.



 

Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

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Taxes
Audit RatesAccounting Today recently published an article, “Ten Major Trends in IRS Audits,” examining how IRS audit rates have changed over the past several years. This article provides useful information for taxpayers, especially those who own a business.

Your business is less likely to be audited if it is a partnership or an S Corporation. According to the article, “The IRS continues to struggle to audit S corp and partnership returns. This situation is likely to get worse as the more experienced IRS business auditors continue to retire. Audit rates for S corps and partnerships are both 0.22 percent – or, put another way, one in every 455 passthrough entities were examined in 2018. It is no wonder that the number of S corporations have increased by 38 percent from 2005 to 2018 (3.5 million in 2005 versus 4.85 million in 2018).” This is an important factor to consider when thinking about making an “S election” for your business.

In addition, audit rates have dropped overall in the last decade. “Most taxpayers envision Internal Revenue Service audits as intrusive investigations resulting in criminal sentences. Today, nothing could be farther than the truth. The IRS’s auditing power has been greatly diminished in the past decade. IRS audit resources have been reduced by 28 percent in the last decade and the audit rate has dropped from 0.9 percent in 2010 to o.5 percent in 2018. In fact, the number of IRS audits in 2018 (991,168) dropped by almost half compared to 2010 (1.735 million).”

Nevertheless, there are situations where the IRS consistently audits companies or individuals. According to the article, audits are especially popular among the wealthy. “In 2011, one out of every eight taxpayers who earned more than $1 million in income were audited. In 2018, the number dropped to one in every 31 taxpayers. However, those who earn more than $1 million are still among the most popular audit profiles.”



Article References
Accounting Today, “Ten major trends in IRS audits.” By Jim Buttonow. Click here to read the original article.



Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

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Taxes
The IRS urges taxpayers to act now to avoid “tax-time surprises” and ensure smooth processing of their 2019 federal tax return. It is never too early to start preparing, so we have arranged four tips that will help you file taxes on time.

FIle Taxes


1. Adjust Withholding; Make Estimated or Additional Tax Payments


The IRS has a tool called the “Tax Withholding Estimator” that enables individuals to perform a paycheck or pension checkup.  This tool is important for individuals who received a smaller refund than expected or owed an unexpected tax bill last year.

If the Tax Withholding Estimator recommends a change, the employee or recipient of a pension or annuity income can make adjustments. An employee can submit a new Form W-4 to their employer. A recipient of a pension or annuity income can complete Form W-4P and submit it to their payer. Note that these forms should NOT be sent from the employee or recipient directly to the IRS.

The calcuation of quarterly tax payments is especially important for independent contractors and business owners.  Massey and Company will calculate your quarterly taxes upon request, using sophisticated tax projection software.



2. Gather Documents and Organize Tax Records


Massey and Company, along with the IRS, strongly suggests that all taxpayers should develop a recordkeeping system. This can be electronic or paper, but it serves to keep all the important information in one place.   We strongly recommend the use of QuickBooks Online for all our business clients.  The IRS says that taxpayers should keep copies of filed tax returns and all supporting documents for at least three years. 

To avoid refund delays, be sure to gather all year-end income documents before filing a 2019 return. Filing too early, before receiving a key document, often means a taxpayer must file an amended return to report additional income or claim a refund. And it can take up to 16 weeks to get an amended return refund.
 File taxes
Remember to also notify the IRS of address changes and notify the Social Security Administration of a legal name change to avoid refund delays. 


3. Renew Expiring Tax ID Numbers


An ITIN (Individual Taxpayer Identification Number) is a tax ID number used by any taxpayer who doesn’t qualify to get a Social Security number. Taxpayers with expiring Individual Taxpayer Identification Numbers can get their ITINs renewed more quickly and avoid refund delays next year by submitting their renewal application soon.

Taxpayers who fail to renew an ITIN before filing a tax return next year could face a delayed refund and may be ineligible for certain tax credits. With nearly 2 million taxpayer households impacted, applying now will help avoid the rush as well as refund and processing delays in 2020.


4. Be prepared to File Electronically; Use Direct Deposit for Refunds


Electronic filing is the easiest, safest and most accurate way to file taxes. When you combine Direct Deposit with electronic filing, you get the fastest, easiest way to get your refund.  With Direct Deposit, a refund goes directly into the taxpayer’s bank account. No need to worry about a lost, stolen or undeliverable refund check.

Direct Deposit is easy to use. Taxpayers select it as their refund method through tax software or let their tax preparer know they want direct deposit. Taxpayers can even choose Direct Deposit on a paper return. Direct Deposit also saves taxpayer dollars which makes it a win-win solution for everyone.

Massey and Company offers electronic filing and direct deposit to all its clients.

Something to Keep in Mind

The IRS cautions all taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer.

The tax and accounting services provided by Massey and Company can help to guide you in getting a jump-start on your taxes. For more information, contact us today by calling 678-235-5460, or send an email to gary.massey@masseyandcompanyCPA.com. You also have the option to contact us through our website.





Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

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Instruction, Taxes
What is IRS Notice CP2000?


We have noticed a significant increase as of late in the number of Atlanta taxpayers receiving IRS Notice CP2000 in the mail. This notice provides detailed information about issues that the IRS identified in their computerized review of a tax return.   The IRS sends this notice when information from a third party source (such as a 1099 or W-2) does not match the information the taxpayer reported on their tax return.

The notice also provides steps that taxpayers can and should take in order to resolve those issues. Here are 6 things that will help you better understand the importance of receiving an IRS Notice CP2000 and what you should do. 

What You Need to Know

1. As we have already touched on, the IRS sends a notice to the taxpayer when a tax return’s information does not match the data reported to the IRS by third parties, such as banks, vendors or employers.

2. This notice is not a formal audit notification. It is simply a notice to see if the taxpayer agrees or disagrees with the proposed changes.
 

3. Taxpayers should always respond to the notice CP2000. Usually, the taxpayer has 30-days from the date printed on the notice to respond. 

4. The IRS provides a phone number on each notice that they send out. IRS telephone assistors can explain the notice and what taxpayers need to do to resolve any issues. 

5. The IRS will send a follow up notice to taxpayers who do not respond to Notice CP2000, or if the IRS does not accept the additional information provided.   This second notice is called a Statutory Notice of Deficiency. 

6. The Statutory Notice of Deficiency provides detailed information about why the IRS proposes a tax change and how the IRS determined the change. The notice tells the taxpayers about their right to challenge the decision in Tax Court if they choose to do so. It is critical to respond to this notice within the required time period, in order to preserve legal rights.

Massey and Company CPA represents taxpayers who receive IRS Notices.  To learn more, give us a call at 678-235-5460, or email us at gary.massey@masseyandcompanycpa.com. You can also contact us through our website by visiting the home page.



Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

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Accounting, Taxes
The Internal Revenue Service is automatically waiving estimated tax penalties for more than 400,000 eligible taxpayers who already filed their 2018 taxes but did NOT claim the waiver. The IRS will apply this waiver to tax accounts of all eligible taxpayers. There is no need to contact the IRS to apply for or request the waiver. 



Earlier this year, the IRS lowered the usual 90% penalty threshold to 80%. This was done to help taxpayers whose withholding and estimated tax payments fell short of their total 2018 tax liability. The agency also removed the requirement that estimated tax payments be made in four equal installments, as long as they were made by Jan 15, 2019.

The automatic waiver applies to any individual taxpayer who paid at least 80% of their total tax liability through federal income tax withholding or quarterly estimated payments, but did not not claim the special waiver available to them when they filed their 2018 return earlier this year. 

In an Effort to Help Taxpayers

According to IRS Commissioner Chuck Rettig,  “the IRS is taking this step to help affected taxpayers.” In addition, he states, “This waiver is designed to provide relief to any person who filed too early to take advantage of the waiver or was unaware of it when they filed.”

The IRS will mail copies of notice CP 21 granting this relief to the affected taxpayers. Any eligible taxpayer who has already paid the penalty will also receive a refund check about three weeks after their CP 21 notice regardless of whether or not they requested penalty relief.

What You Need To Do

For those yet to file their 2018 tax return, the IRS urges every eligible taxpayer to claim the waiver on their return. This includes those with tax-filing extensions due to run out on October 15th, 2019. 

The waiver most likely applies to anyone with unexpected tax bill or penalty on their tax return this year. It also likely applies to those who made withholding adjustments in 2018 or had a major life change. Those that are high at risk for having too little tax withheld include those who itemized in the past but now take the increased standard deduction, as well as two wage-earner households, employees with non-wage sources of income and those with complex tax situations.

To discuss, give us a call at 678-235-5460, or send an email to Gary.Massey@MasseyandComapnyCPA.com. You can also contact us directly through our website by visiting our Home Page





Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA
Massey and Company CPA
P.O. Box 421396, Atlanta, GA  30342
Massey and Company 

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Do you have upcoming travel plans? If you are owe significant tax debt, you could be in for a surprise. Your passport can be revoked on account of the debt you owe. If you have significant tax debt, you should contact the IRS or your tax professional as soon as possible to avoid the revocation of your passport. 



How Much Debt is Too Much?

The IRS will notify the State Department of all taxpayers who owe a seriously delinquent tax debt, which is currently $52,000 or more.  The State Department may deny passport applications or renewals from those individuals. If the individual has a valid passport, the State Department has the power to revoke their passport or restrict their ability to travel internationally.

If You Owe Debt, Don’t Wait!

When a passport is revoked, the taxpayer or their representative will have to petition the IRS for the action to be reversed.  Expedited processing of these petitions reduces the normal 30-day processing time by 14-21 days.   However, taxpayers seeking expedited action will need to be able to demonstrate to IRS that they have travel scheduled within a 45-day time-frame, or that they live abroad. 

Taxpayers or their representatives must call the IRS within 30 days after receiving notification that their passport will be denied or revoked.  The matter can often be corrected if the taxpayer is able to show a good-faith attempt to resolve their tax debt.   For example, this can be done by means of an Offer in Compromise or an Installment Agreement.


Working with the IRS on passport matters can be intimidating. Our firm regularly represents taxpayers with significant tax debts, including those faced with the revocation of their passport. For a free consultation, contact Gary Massey, CPA by calling 678-235-5460, or email us at gary.massey@masseyandcompanyCPA.com.



Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA
Massey and Company CPA
P.O. Box 421396, Atlanta, GA  30342
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If you are a business owner, you know how important it is to track your expenses. You are probably also aware that keeping track of your money is becoming more and more difficult in our fast-paced digital world. 

When it comes time to filing taxes, you need to be prepared with an organized expense record for your business. This has been a difficult task in the past. However, with QuickBooks’ new online receipt capture feature, this task has changed. Now, keeping a current record of your expenses has never been easier!





“Audit-Proof” Your Business with the Snap of a Picture

QuickBooks Online has always given you the option to sync your bookkeeping records to your bank accounts, credit card accounts, Paypal and Square.  What’s new is that you can now take pictures of your receipts on your smart phone, using the QuickBooks app.  The pictures are attached to your transaction inside QuickBooks and saved forever.  No more paper.  And your books are now audit-proof, in case the IRS ever comes knocking.

And with the ease of the QuickBooks App, you can audit-proof your business from virtually anywhere! 


The Best Part – No Extra Fees!


The best part of this new feature is that it comes with no extra cost for users of QuickBooks Online.

This feature could change the way you run your business, and make your life easier.  Think about what it will be like to eliminate years of paper receipts with the click of a button!  Plus, imagine going to sleep at night without worries of the IRS challenging your expenses in an audit.

We can show you how Receipt Capture works.  Feel free to give us a call at 678-235-5460, or shoot me an email at Gary.Massey@MasseyandCompanyCPA.com.  You can also contact us via our website.






Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits
Gary Massey, CPA
Massey and Company CPA
P.O. Box 421396, Atlanta, GA  30342
Massey and Company

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