Your address will show here +12 34 56 78
Taxes

Click below to watch our NEW video about Home Office Tax Deductions!

Do you run your business from a home office? If so, this video is for you!


Home Office Tax Deductions



In this video, we discuss tax deductions for home offices. First, we explain what qualifies as a home office (for the purpose of the deduction) and the specific rules that apply here. We also share information about the two methods of calculating this deduction and which one might be best for you and your business. Finally, we dive into the types of entities that can claim this deduction when it is time to file taxes. 


IRS Audits and the Home Office



Keep in mind that home office deductions are perfectly legitimate business expenses and may be deducted with confidence on tax returns.  Nevertheless, they are on the IRS radar as a potential area of abuse.  So, be sure that you meet all the rules.  For example, a home office must be a place where you routinely meet clients.  Alternatively, it must be your primary place of business.  In addition, the office space must be solely for business.  However, there is an exception for elder care and day care centers, where mixed use facilities are allowed.

Lastly, be careful that the size of your home office, expressed as a percentage of your entire home, is correctly reported on your tax return.  IRS auditors have been known to visit home offices with a tape measure.  So be exact.


Accountable Plan


Business that are formed as an S corporation, or an LLC with an S corporation election, may create an accountable plan to reimburse the owner-employee for home office expenses.  This is a great method to ensure that the owner, who is also an employee of the S corporation, gets the tax deductions for the home office.  These expenses will be passed through to the owner from the entity via their K-1.  Without the accountable plan, the home office would be deemed to be the personal expenses of the owner-employee and would not be deductible, especially after the elimination of itemized miscellaneous deductions on Schedule A of Form 1040.


If you enjoyed this video, and would like to see more of our tax and accounting videos, please check out our YouTube Channel! Be sure to subscribe so that you see our future videos that could benefit you and your business.

To learn more about the services our CPA firm provides, visit our home page!

If you wish to learn more about getting this deduction, call our office in Atlanta, GA at 678-235-5460 for a free consultation.


Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia. We are dedicated serving the needs of small businesses and their owners.

0

Taxes
Do you have upcoming travel plans? If you owe significant tax debt, you may be in for a surprise. The State Department can revoke your passport if you owe a significant tax debt to the IRS.  Therefore, taxpayers with tax debts and international travel plans should contact their CPA as soon as possible to protect their passport. 



How Much Debt is Too Much?


The IRS will notify the State Department if a taxpayer has a seriously delinquent tax debt.  As of March, 2020, the amount of tax to be considered seriously delinquent is $53,000 or more.   This amount is adjusted annually. 

Once notified, the State Department may then deny or revoke passport applications and renewals and restrict international travel.

If You Owe Debt, Don’t Wait!


When a passport is denied or revoked, the taxpayer should petition the IRS for the action to be reversed.   Normal processing time for these petitions is 30 days.  However, expedited processing is available under certain circumstances. 

Fortunately, the matter can usually be corrected if the taxpayer cooperates and is able to show a good-faith attempt to resolve their tax debt. For example, requesting an Offer in Compromise or an Installment Agreement is an example of a good-faith effort.


Working with the IRS is intimidating. Therefore, feel free to call our office in Atlanta, GA at 678-235-5460 to discuss your situation.

Check out our YouTube Channel!


Founded by Gary Massey, Massey and Company CPA serves the needs of small businesses and business owners.  The firm handles tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting.  Offices are in the Buckhead neighborhood of Atlanta.

Massey and Company CPA
P.O. Box 421396, Atlanta, GA  30342
0

Taxes
Taxpayers are entitled to independent representation.  However, divorces or other situations with competing points of view often result in conflict of interest.  A conflict of interest occurs when the advice of the CPA may provide a benefit to one spouse at the expense of the other spouse.   Sometimes a second CPA must be hired to ensure independent representation of both parties.  While the added expense is unfortunate for the taxpayers, there may be no choice.

Divorcing taxpayers should expect their CPA to be concerned about a conflict of interest if the following are true:
  1. One spouse’s interests are directly adverse to the other spouse’s interests;
  2. There is a significant risk that the services to one spouse would be materially limited by the responsibility to provide services to the other spouse; or
  3. The CPA’s objectivity is impaired because of the relationship of the spouses to the CPA

Examples of Conflict of Interest



Here are some examples that illustrate potential conflicts of interest:

Example 1:  A CPA represents a married couple for years.  Now they want a divorce.  However, both parties want to continue to use the same CPA.    Conflict of interest may arise if the returns contain a tax position that benefits one spouse and hurts the the other spouse.  For example, prior to the finalization of the divorce, one spouse may want to file a joint tax return and the other spouse might prefer to file separately.  Or, the CPA may be asked to disclose information that is confidential with respect to either party.  

Example 2:  A CPA represents a married couple in a tax collection case.  As a result of the representation, the IRS deems the the couple to be currently not collectible.  The IRS puts the tax on hold and stops all collection activity.  Later, the couple divorces.  Here too, both parties want to continue to use the same CPA.  A conflict of interest may arise if the CPA helps one spouse to successfully negotiate an Offer in Compromise with the IRS after the divorce.   The other spouse will then become responsible for the balance of the tax, to which they may object.  

Example 3:  The result is similar in a business context.  It is common, for example, that a CPA represents both a business and its owners.  However, a conflict of interest may result if there is a dispute among the owners.  In such case, the CPA may represent the business, but each owner should hire their own CPA to represent them individually.


Conflict of Interest Waiver



A CPA may represent both parties when there is a conflict of interest, as long as the parties are aware of the conflict and agree to waive their concerns.  This waiver should be done in writing.  If both parties refuse to sign the waiver, the CPA will have to withdraw from the engagement.

Importantly, the CPA must also believe that he or she can perform the service with objectivity, competence, diligence and integrity.  Otherwise, the CPA may not represent both parties.  When in doubt, the CPA should withdraw from the engagement.


Taxpayers in Atlanta and beyond, give us a call at 678-235-5460 to discuss your tax situation related to divorce or business conflict.


By Gary Massey, CPA

Subscribe to our YouTube Channel!
Founded by Gary Massey, CPA, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.

0

Taxes
If you are an Atlanta, GA 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. 

Suppose 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. 

In the event that you cannot afford to pay your taxes, do not make the mistake of thinking that it would be better to not file at all. The IRS will not negotiate with you if you have not filed your tax returns.  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.


0

Taxes

 


Watch our new video to learn about IRS tax appeals!

In this video you’re going to learn about IRS Tax Appeals and, additionally, how Appeals can be used to save yourself from a painful situation with the IRS.

We cover three types of Appeals: Collection Due Process (CDP) Appeals, Equivalent Hearings and Collection Appeals Process (CAP) Hearings.

A taxpayer’s appeal rights are triggered after receiving a Notice of Federal Tax Lien or a Final Notice of Intent to Levy.

The first type of appeal that we discuss is the Collection Due Process Hearing (CDP). This is the most powerful type of appeal and offers the most protection and rights to the taxpayer.   In addition, a request for a CDP Hearing must be made within 30 days.

The second type of appeal that we review is the Equivalent Hearing. This offers fewer rights than a CDP Hearing, but it is more flexible in terms of timing.   A taxpayer may request an Equivalent Hearing for up to one year.

The third type of appeal that we discuss is called Collection Appeals Process (CAP). This is used primarily to untangle administrative errors relating to cases, such as levies issued to the wrong taxpayer.

Lastly, we discuss what an actual Appeal looks like and what you need to know to be successful at an Appeal Hearing.


If you enjoyed this video, and would like to see more content visit our YouTube channel!

To learn more about the services we provide, call our office at 678-235-5460, or visit our Home Page!


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

0

Taxes

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

In this video, we go through the ins and outs of IRS tax liens.  They are horrible, scary and wreck your credit score. And they make it harder to sell your house.  Here we learn exactly how to get out from under an IRS tax lien.

We start with an introduction to how an IRS tax lien works. Topics include what triggers the lien, the impact of lien on credit scores, appealing a lien, and when tax liens expire.


Strategies


We cover three strategies to deal with an IRS tax lien:

First, we explain how to discharge an asset from under a lien. This simple strategy allows the taxpayer to sell their house, even if the IRS has a lien on their property.

Second, we talk about loan subordination. By subordinating a loan, the taxpayer is able to refinance their debts, including a mortgage. The IRS agrees to allow another creditor, such as a bank, to take priority on a debt. Therefore, the debt is refinanced and the taxpayer uses part of the proceeds to pay off the back taxes owed to the IRS. Once the tax is paid, the lien goes away.

Third, we review the process to have a lien withdrawn. This is a great solution for those with $25,000 or less in tax debt.

We conclude the video with a discussion on foreclosures of tax liens. This may be the unfortunate result for those taxpayers who ignore their tax liens, along with repeated warning letters from the IRS.   As a result, these people can end up losing their house to pay back taxes.


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! 


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


0

Taxes
Tax and divorce.  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 IRS transcripts which will show what, if anything, is missing.   IRS 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.   This is called joint and several liability.  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. The IRS 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.


0

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!

 

In this video, we explain what a taxpayer must do to be considered in tax compliance. We also explain how being in tax compliance is a crucial aspect of making a deal with the IRS.

In addition to this, we lay out the steps an individual can and should take to be able to negotiate a deal with the IRS.  In order to negotiate a deal with the IRS, you will need to prove that you are a good tax citizen. 

Contact us

If you are interested in learning more about the tax and accounting services our firm provides, visit our Home Page!  Call our office at 678-235-5460 for a free consultation. We would love to hear from you!

If you enjoyed this video, and would like to see more of our tax and accounting videos, check out our YouTube Channel! Be sure to subscribe so that you don’t miss future videos!


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


0

Taxes
Divorce is hard.  Taxes make it harder.  Watch our latest video on the 7 key tax questions for Atlanta taxpayers to ask before getting a divorce!

Check out our video on taxes and divorce.   Here are the questions that we address:

  1. What to do if tax returns are missing?  What will the divorce court do about missing taxes?  Should we file married or separately?
  2. How will tax responsibilities be divided?  What is the significance of a joint tax return?
  3. What if I don’t trust previously filed tax returns?
  4. Is our accountant impartial?
  5. Are there options to deal with significant unpaid tax debts, interest and penalties?  What is an Offer in Compromise?
  6. Can we sell marital property if it has an IRS tax lien?
  7. Are there any negotiation points related to taxes that I should know?


If you would like to watch more of our videos, click here!

If you would like to learn about Innocent Spouse Relief, which often becomes important in divorce situations, click here!

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



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

0

Taxes

Watch our newest video to learn about the types of Innocent Spouse Relief!


What do we mean by the term “Innocent Spouse?” In the tax world, this happens when a couple files a joint return and one spouse feels that they should not be responsible for the tax. There are three types of relief for the innocent spouse:


1. Traditional Innocent Spouse


This happens when there is an understatement of income on a tax return and the innocent spouse did not know, or have reason to know, about the understatement.   It is inequitable to hold the innocent spouse responsible for the tax.  He or she must, however, request relief within two years of the start of IRS collections.  The tax liability is allocated between the spouses, with the income at issue allocated to the other spouse.  


2. Separation of Liability


This happens when there is an understatement of income on a tax return.   The two spouses must have been divorced, or legally separated, for at least 12 months.   In this case, they must request relief within two years of the start of IRS collections.   The ex-spouses involved will be treated as married filing separately. The tax debt will be allocated based on who earned the income, or who owns the assets that are the source of income.   Usually, this provides the better answer for our clients. 

 


3. Equitable Relief 


This happens when there is an understatement of income on a tax return, or the tax is correct but unpaid.  In this case, there is no requirement to file for equitable relief within two years.   Given all the facts and circumstances, it is simply inequitable to hold the spouse responsible.  The IRS will also consider marital status, economic hardship, knowledge or reason to know, abuse, physical or mental health and financial dominance in the case of Equitable Relief.   Tax liability will be allocated between the spouses. 


 

There is also relief for the Injured Spouse. This situation occurs when the couple files a joint tax return and some or all of an expected joint refund is taken to pay the other spouse’s tax liability. For example, the IRS takes part of a joint tax refund related to child support from a previous marriage.   The IRS will then give you your share of the money back. 

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

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



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

 

0

Taxes

Watch our new video below to learn about the different strategies to challenge a tax bill!

How Do You Challenge a Tax Bill?

An incorrect tax bill is 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 bills with incorrect tax amounts.

I hear of taxpayers 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! Fortunately, there are ways to challenge an IRS tax bill.  Here is out list:

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)  – challenge the tax bill

    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, then they can bring a litigation suit.


6. Bankruptcy

The issue can be challenged through bankruptcy

If you have questions about a tax matter, call our Atlanta office at 678-235-5460. For more information, go to our website home page!

Subscribe to our YouTube channel!


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

0

Taxes
Click below to watch our most recent video about what to do if you cannot pay your taxes. If you are unable to pay your IRS tax debt, this video is for you!


In this video, we discuss what options a taxpayer may have if they cannot afford to pay their tax bill. In addition, Gary explains the importance of being in tax compliance when making a deal with the IRS. Similarly, he provides the various steps a taxpayer will need to take in order to be considered in tax compliance. Above all, it is important to remember that not filing a return is NOT a solution, and it will only make the situation worse. 

Finally, Gary discusses the options available to the taxpayer to negotiate with the government.


If you enjoyed this video, check out our YouTube channel to see more of our tax and accounting videos! Be sure to subscribe to see future videos that could benefit you or your business.

For more information about the tax and accounting services we provide, visit our Home Page. If you cannot pay your taxes, call our office today for a free consultation at 678-235-5460!


Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia. We are dedicated to serving the needs of small businesses and their owners.

0

Taxes
The IRS urges taxpayers to act now to avoid “tax-time surprises”and ensure smooth processing of tax returns. It is never too early to start preparing.  For this reason, we have arranged four tips to help people file taxes on time.


1. Adjust Withholding; Make Estimated or Additional Tax Payments


“Tax Withholding Estimator” enables individuals to perform a paycheck checkup.  This IRS tool is important for individuals who received a smaller refund than expected or owed an unexpected tax bill in the past.

If the Estimator recommends a change, employees make adjustments to their withholding taxes.  In such case,  employees submit a revised Form W-4 to their employer.   Note that employees should not send these forms to the IRS.

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


2. Gather Documents and Organize Tax Records


We strongly suggest that all taxpayers utilize a tax record-keeping system. Whether electronic or on paper, this system keeps all the important information in one place.   Many of our business clients use QuickBooks for this reason.  Please note 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 tax return. Filing too early, before receiving key documents, often means a taxpayer must file an amended return to report additional income or claim a refund.   Furthermore, it can take up to 16 weeks to receive a refund from an amended return.
 File taxes
Remember to also notify the IRS of address changes.  Also, be sure to notify the Social Security Administration of legal name changes to avoid refund delays. 


3. Renew Expiring Tax ID Numbers


An ITIN (Individual Taxpayer Identification Number) is a tax ID number used by a taxpayer who does not qualify for 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.


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


Electronic filing is the easiest, safest and most accurate way to file taxes. Direct deposit combined with electronic filing offers the fastest, easiest way to get a refund.   Furthermore, direct deposit eliminates the worry of lost, stolen or missing refund checks.

Direct deposit is easy to use.  Taxpayers select it as their refund method through tax software or tell their tax professional.    As an added benefit, direct deposit is less costly to the IRS, saving taxpayer dollars.  

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, especially those that are paper-filed, require additional review and take longer to process.

To get a jump-start on taxes, contact the firm today at 678-235-5460.  

Our YouTube channel!



Founded by Gary Massey, Massey and Company CPA serves the needs of small businesses and business owners.  The firm handles tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting.  Offices are in the Buckhead neighborhood of Atlanta.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

0