Helpful Tips & Tax Advice

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Keep Your Passport by Paying your Taxes

Summer officially started this week and many of you may be planning on taking a vacation or two. And you should! You deserve it. But if you’re looking to travel internationally, you should double-check that your taxes have been paid in full or that you have an appropriate installment agreement with the IRS established. Otherwise, your passport could be at risk. That’s the message the IRS delivered in January when it announced implementation of new procedures affecting individuals with “seriously delinquent tax debts.” According to an IRS press release, the new enforcement policy impacts primarily those owing $51,000 or more in unpaid back taxes for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired – or … Continue reading

How & When to Use Home Tax Deductions

Tax deductions are hidden all over the place, and the keen-eyed citizen can take advantage of them with ease. When selling a home (or any other investment) you should find out when is the right time to sell, to make the maximum profit. But no matter when you sell, there may be deductions available to you, even if you made a profit on your home. Following are a few tips and points of attention to maximize the value of your potential deduction. Period of Residence If you have been residing in the house for at least two of the five years before the sale date, you can exclude part of, or all the gains that you made from the sale, if you made a gain … Continue reading

Avoid IRS Collection Scammers and Cons

The Internal Revenue Service recently delivered an Information Release on their website  ( to help guide taxpayers in determining whether someone claiming to an Agent or Collector is truly that or is an impostor. At their website, they have a handy printable infographic to help. There has been a rash of impostors attempting to take advantage of unwitting taxpayers and the IRS wants taxpayers to understand the methods in which IRS gets ahold of those owing back taxes or requiring amendments in an effort to help them breathe easy when confronted with many of these conmen. THe IRS will typically make first contact with taxpayers through the US Postal Service and an appearance by a casework at your home will never be without an attempt … Continue reading

AI and the Future of Professional Tax Preparers

In the past week, we’ve seen two titans of tech, Elon Musk and Mark Zuckerberg spar on Twitter over the continued emergence of Artificial Intelligence (AI) and its eventual impact on our lives. From watering one’s garden to automated trading, AI has become a buzz-term and holds importance in understanding our future. Without having visited the future, not even the masters of the futures two giant companies can be sure of what’s to come as we choose to rely more and more heavily on computer-powered systems. H&R Block partnered with IBM Watson (the bodiless AI program of Jeopardy fame) last year to spread its computational capabilities and powerful algorithms in 10,000 of its U.S. locations. The system, of course, is not the full-fledged Watson system … Continue reading

Quarterly Estimated Taxes & The Self-Employed

Everyone’s talking about entrepreneurship or starting a side-hustle or new business these days. With the potential for believed freedom, flexible hours, personal goal achievement, and no more bosses, who can blame them? Having done diligent research would direct future small-business creators to see the needs placed on them through the IRS.   However, for as popular as self-employment is the ideas behind quarterly estimated taxes aren’t as understood as they ought to be. After all, if you’re supposed to be paying these taxes, there are gonna be penalties if you don’t comply. Follow our bullet points below to learn more about these important taxes for small business owners. What are quarterly estimated taxes? As most people are employees of someone other than her or himself, they … Continue reading

Back Taxes Can Now Affect Your Vacation Options

While much effort has been put forward by CPA Firms like Professional Tax Resolution to warn of the potential dangers of fraud regarding the IRS’s new use of private debt collection agencies, there has been little discussion of another provision introduced at the same time through the FAST Act. Much more out of the control of individual taxpayers, this provision sees the State Department teaming up with the IRS to revoke or suspend passports due to unpaid and unresolved taxes. Earlier this year, the IRS provided insight into how the program will effect those with outstanding taxes. Section 32101 of the FAST Act allows the Secretary of Treasury to provide the Secretary of State with a list of “seriously delinquent taxpayers.” This list will acted upon with denial, … Continue reading

Tax Code: Reform Will Not Be Easy

The President and his team recently released a one-page document proposing major changes and deep cuts to the individual tax system. Released near the 100-day mark of his administration, the plan includes changes in rhetoric that betray some of what we’ve heard for the past months and during the campaign. Notably, the repeal of deductions of state and local taxes paid, could have a negative effect of high-tax states such as California, New York, and New Jersey. The standard deduction would only be applicable to charitable donations and mortgage payments. Tax rates have been proposed to drop to 35% from almost 40% in the top bracket, with lower brackets being set at 25% and 10%. Corporate taxes would be lowered to 15% from 35% with … Continue reading

Converting a California C-Corp to an S-Corp

As companies grow and change over the course of their lifetime, certain structures that were set up at the beginning of the venture may grow obsolete and need to be changed. Legal forms of organization that were once appropriate and helpful to the business may come to work against it. There’s an importance in noting that in most cases where tax and business considerations allow, it is possible to convert a company’s organization to better suit current and emerging goals. Can You Convert a California Corporation to Other Entity Forms? Generally, domestic stock corporations can convert into other official California business entities. California limited liability company (LLC), limited partnership (LP) or general partnership (GP) can convert into a California or foreign other business entity. Provided … Continue reading

Bill Gates Proposes Tax on Labor Replacing Tech

Is it possible to cover the loss of income tax to governments local and federal and in between? During 2016’s Presidential race, there was no discussion of automation. As opposed to globalization, which dominated large segments of the debates. The true driver of job loss between 2000 and 2010 was in fact the rise of the robot with greater than 80% of losses jobs attributed to it. The questions include the determination of effective tax rates, the future of human capital, and the potentials of a Universal Basic Income proposed and championed by Elon Musk and other futurists. For all his “techno-optimism” Gates still believes that the tax will only slow the tide of machines taking over as a preferred source of labor. In discussing … Continue reading

Net Operating Loss Deduction in the News

Net Operating Loss Deduction in the News A net operating loss occurs when the allowable business tax deductions for any given tax year exceeds gross income for that year, thus generating a negative taxable income. Beginning with the Revenue Act of 1918, tax law has allowed for the carryover of such losses, making them a valuable tax planning tool for reducing taxable income in any year where a profit is generated. The federal carryback and carryforward periods, which have fluctuated over the years, are currently set at two and 20 years, respectively. Many states also permit the carryover of a net operating loss although the allowable the time periods and rules governing the deduction vary considerably from state to state. At the present time, the … Continue reading

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