To watch more of our YouTube videos, subscribe to our channel!
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.
Watch our new video to learn the three ways you can get rid of an IRS tax lien!
To watch more of our tax and accounting videos, subscribe to our YouTube channel!
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.
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.
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.
If you do not trust the previous filed tax returns, then you can file amended returns, provided that your spouse agrees.
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.
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.
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.
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.
If you liked this video, please subscribe to our YouTube channel for more tax and accounting advice!
For more information about the services we provide, visit our Home Page!
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.
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.
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!
If you would like to watch more of our videos, click here!
For more information on 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.
Watch our newest video to learn about the types of Innocent Spouse Relief!
For more information about the services we provide, visit our Home Page!
If you would like to watch more of our YouTube videos, click here!
Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.
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
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.
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.
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.
If you have questions about a tax bill, call our Atlanta office at 678-235-5460. For more information, go to our website home page!
Click here to watch our new video on Getting Tax Refunds for Late Returns!
|
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
Accounting 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.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
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.
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.
Remember to also notify the IRS of address changes and notify the Social Security Administration of a legal name change to avoid refund delays.
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.
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.
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
What You Need to Know1. 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
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.
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
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