Yeah big accounting is the reason there are national advertisements for ambulance chasing “tax attorneys” that can help resolve your IRS debt.
The people needing the help of an OIC mill are the people who can only afford to pay $400 to a CPA and def not a big accounting firm, you’re now being disingenuous. Posting that people who do their returns themselves run the risk of “substantial understatement” is only accurate at the margins and for most people is not even close to being a concern
substantial underpayment is 10% of tax or 5% if you claim 199A. I don’t think that’s an incredibly hard threshold to meet. not going to argue. I think there’s benefit to using a CPA and most CPAs don’t charge enough. I also said not everybody needs a CPA. I believe the value I provide is more than the time it takes to prepare the return. I mainly work in international structuring and compliance so I believe there is value in my advice given the potential penalties (yes including criminal for willful acts) and for the time it took me in the past to acquire the knowledge I have now. I am not trying to disparage those that do charge $400. I just don’t see how you can do that, be profitable, and have decent quality control.
One of the main things I remember about crypto is it being a huge pain in the ass at tax time. God speed
Crypto reporting is just a bitch if you trade with any regularity at all. I'm really glad I got out of the sector of the industry that does of volume-based 1040s before crypto became uber popular. The few times I encountered it in 2018-2019 were just miserable.
The only time I've heard of an average joe running into this is when someone thinks they are a Schedule C by mistake and tries to take a bunch of deductions as a W-2 employee. Spoiler like my fiance apparently did in 2017 Spoiler and again in 2018
Easy - you pay your staff and seniors the lowest wages possible that will keep them there, order lots of food for the office during tax season to convince them you value them as part of your firm (and to keep them working through lunch/dinner), and take on every shit client that calls you. Part of the profitability also comes from that $400 1040 hopefully gets you in charge of filing any small business 1065/1120S returns the individuals are associated with for $2000+ basically for copy pasting quickbooks financials into the tax software
any of you ever successfully get penalty relief due to serious medical illness for you/family member? https://www.irs.gov/payments/penalty-relief IRS just sent my dad a notice saying he owes an additional $900 for penalty and interest for his 2022 because he filed late. He filed late because he had a massive stroke and was in hospital/rehab for months, and he can't speak or do it himself. His wife was caring for him. I eventually stepped in and got the return completed and filed but it wasn't until Q4-2023.
Very possible. You'll have to write them a response and include the notice with it. In the mean time it's not a terrible idea to call the IRS and have them put a hold on the account so they don't accrue anymore P&I on the balance
Like an idiot, I mailed my AL state return this year. Was a month ago, still not accepted. Am probably still going to have to e-file. #dumb
Sounds like you should may want to talk to a professional about the tax difference between a bonus and a distribution and whether you can achieve some tax efficiency with one over the other Edit: changed “should” to “may want to” because I know you’re going to argue and idgaf
I'm using the term loosely but she usually just does distributions, but early last December she decided to give herself a little something outside the regularly scheduled year-end stuff. As soon as I checked the ledger and realized she'd done it that way I knew we were in for a bit of a hit come April because no state or federal taxes were withheld even though payroll taxes and CASDI were
How do my dual income married folks do their withholdings. My taxes are constantly fucked. Last year I owed 25k. Owed 15k this year. Itemization is now 28,000 so took standard deductions. One child Should we flip our status back to single and claim 1/1? Married fucks our taxes b/c we're both taxed at joint brackets, so one salary ends up massively undertaxed. Try to resubmit the W4 or whatever with manual estimated withholdings?
It’s really not that hard. You have years worth of returns to look back at. Adjust accordingly, have your employer hold extra. I make ~50% more taxable income than my wife, I am taxed at single/0. She’s taxed at mfj/1 I think. I owed $300 federal this year.
Yes, I understand it is just math. Trying to figure how ppl do it. You adjust your withholdings by altering your status. I think you can just auto hold $xx too.
You can ask your payroll folks to withhold a certain amount of money. Might even been an online portal
I have the option of adjusting my filing status (single/mfj/etc) along with dependents and I can request my employer withholds a flat dollar amount per paycheck; I’m pretty sure that’s just an option in the W4 form so I imagine any basically competent HR group can do it. Sounds like the simplest thing for you might be to have them withhold a flat extra $600 or so bucks per paycheck.
Hearing people complain about the itemized deduction levels makes me so mad about how much fucking mortgage interest I pay. I can’t even claim like half of it when itemizing
This and add in my stupid ass high property tax and we are fvcked. A revision to SALT would at least be nice while still sucking less
Use this tool. It will literally fill in your W4s for you. https://apps.irs.gov/app/tax-withholding-estimator
3 hrs 18 mins on the phone w/ IRS today but all done with that today. Made progress, they are sending my parents a letter regarding penalty relief. Will have to send back some information.
Thanks for posting this. I've gotten over $50k in refunds the last 2 years and this is projecting I'm due for another $15k this year, definitely needed to redo my W4
Dude is about to retire and officially stopped giving a fuck. I had forgotten but those fat refunds came on the heels of me owing like $30k in '21 or '22
Amended my return to get a $600 energy credit for installing a new hvac. Now I get $300 back from govt