IRS Trouble Solvers - December 2022

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TRYING SOMETHING NEW IN OUR TRADITIONS The Power of CHANGE

This time of year, we all share one thing in common: We always go back to traditions. Some people go caroling with their family, others bake the same cake or cookies, and some play the same games or watch the same movies. Traditions are sacred to everyone. In my family, our tradition is that we gather around the elaborately decorated Christmas tree on Christmas morning and open our presents. Everyone takes a turn while the others watch, and we enjoy each gift. It’s a great time to laugh, have fun, bond, and enjoy the company of those who matter the most to us. Year after year, that’s how we spend our Christmas morning because it’s our tradition — a ritual that never changes. While traditions are enjoyable and bring families together, they can also have some downsides.

While traditions are great because they give us a foothold in life, they can be extremely limiting. If you aren’t open to trying new things, you may miss out on great new opportunities. Many people fear change or feel uncomfortable when they step outside their comfort zones. As a result, they maintain traditions and visit the same accountant as the year prior. While this isn’t always a bad thing, it can pose a significant risk. In recent news, a tax preparer in New Jersey was recently exposed for having stolen half a million dollars from the IRS through fraudulent credits and tax returns. Often, a client will take a look at the amount of their return and sign their name. If they don’t review the entire return with the preparer, they can’t know it’s 100% accurate. The last sentence on a return above where you sign your name states that everything is accurate to your knowledge. Therefore, if the accountant adds inaccurate information, you are liable as well as the tax preparer, and you’re the one who will owe money to the IRS. My advice is to keep traditions from preventing good common sense. Our slogan here at IRS Trouble Solvers is to practice peace, protection, and posterity. Unquestioned tradition will give you a false sense of peace and protection. If you don’t reevaluate your decisions and traditions now and then, it just might hurt your posterity and future. We must be open to change!

“TRADITIONS ARE SACRED TO EVERYONE.”

DEC 2022

Often, I’ll come across individuals who, year after year, visit the same accountant — because it’s their “tradition.” Instead of researching whether or not that person is the best choice for them and their family, they continue to go to this person because it feels like second nature. Truth be told, as long as people see a return, they don’t ask questions.

From my family to you and yours, merry Christmas and happy holidays! Let’s embrace change in the new year! WWW.IRSTROUBLESOLVERS.COM -Ben Golden

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S CORP, C CO PREPARING EARLY TO F

Before you head to the mall or add items to your shopping cart online, you want to ensure you have enough money to cover your monthly expenses and buy your loved ones Christmas presents. You may feel overwhelmed about your finances and how you will manage to buy gifts. But if you create a Christmas budget, you won’t break the bank! How do you create a Christmas budget? 1. Write down your monthly income: The first thing you want to do is tally up how much money you bring in each month. This lets you know how much money you have before you take out your expenses. 2. Write down your monthly expenses: You want to tally up the total amount of regular monthly costs, including housing, utilities, groceries, and internet. This also includes cars, credit cards, insurance, and other monthly payments. Be sure to add any streaming or subscription fees to this total. 3. Find out how much money you have left over: Subtract your total expenses from your monthly income. The number you get will be the money you have left over for discretionary spending, such as dinner out, a concert, or Christmas presents. But make sure you leave some wiggle room for any unexpected costs. 4. Plan out how much you want to spend on Christmas gifts: Write out whom you want to get gifts for and how much you want to spend. Track your spending as you go to ensure you don’t overspend or forget to buy someone a gift. Shop for Christmas on a budget. 1. Look at last-minute sales: Tons of retailers will offer holiday sales as we get closer to Christmas. So be on the lookout for stores that mark prices down as St. Nick prepares for his journey. DON’T GO BROKE FOR THE HOLIDAYS 4 Steps to Creating a Christmas Budget

Important Docum

The holiday season is busy and this month, you likely have many events to attend, errands to run, and activities to keep you busy, but it’s important to keep your 2022 taxes in mind, too! Although the official tax deadline is roughly still four months away, getting your return filed early will eliminate anxiety and make sure it’s done accurately with plenty of time to spare. As the year draws to a close, here’s a list of documents to gather and set aside for a seamless filing experience. Your Identification Your tax preparer will require certain forms of identification to verify that you are, in fact, who you say you are. Your Social Security card is a great option because when filing, you will need each family member’s Social Security number on hand! Last Year’s Tax Return It is a wise idea to have your 2021 tax return available on hand. Even though you won’t be qualifying for the same write-offs and deductions as you did last year, having the 2021 return readily available can make accessing information and calculating certain portions of the return easier.

2022 Wage Statements

If you work for an employer, you’ll receive a 2022 Form W-2 wage and tax statement. If you are a freelancer or

Best Pork Roast

2. Recycle gift cards: If you received a gift card to a store that you never used (or forgot about), re-gift it this year! Just be sure the card hasn’t expired. 3. Go thrifting: You can

Inspired by RecipeTinEats.com

find great gifts at your local thrift store. Depending on where you go, you can get clothes, books, silverware, furniture, gadgets, and more. Christmas shopping can be stressful, but by creating a budget and sticking to it, you will survive this holiday season like a pro.

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ORP, OR LLC FILE YOUR 2022 RETURN

ments to Prep Now

contracted employee, you will receive a Form 1099-MISC. Your tax preparer will require these forms to file your taxes.

WIN OF THE MONTH Time Waits for No One (And That Includes the IRS )

Additional Income Statements Throughout the year, if you accrued additional income through sources such as investments, Social Security, or unemployment, you will be mailed statements to accompany your wage statements. Be sure to have these statements prepared for your accountant. Proof of Expenses To justify your deductions and write-offs, you’ll need to provide proof via documentation in the form of invoices, receipts, medical bills, IRA contributions, charitable contributions, mileage logs, and/or self‑employment expenses. Real Estate Documents If you recently purchased or sold a home, you’ll need to share all documents pertaining to the sale or purchase with your tax preparer. Other documents to share include proof of paid real estate, proof of personal property taxes paid, proof of paid mortgage, or proof of home equity loan interest.

CASE SNAPSHOT

Keep in mind that when you visit your accountant, it’s better to be over-prepared instead of underprepared! This month, begin gathering your documents — you’ll thank yourself in just a few short months!

Client: Business Owner From Hawaii Type of IRS Issue: Personal Tax Year in Question: Multiple IRS Claimed Liability: $1,226,759.17 Savings: $1,162,867.04

INGREDIENTS

Our client came to us with myriad personal IRS issues. The client was personally issued the dreaded Trust Fund Recovery Penalty in the amount of $1,162,867 (yes, you read that number correctly)! With such a large obligation, he, of course, was worried. However, that wasn’t all he owed. He was also held liable for income tax of $63,892. To pursue a resolution, our clients must be in compliance, meaning all of their tax returns must be accurately filed in compliance with the law. As we were waiting for the required tax returns to be completed, the client began to make business changes that resulted in increased income and assets. This complicated the resolution side of things. When the returns were finally completed, the Collection Statute Expiration Date (CSEDS) had come and gone, and the Trust Fund Recovery Penalty was no longer collectible! However, on the brighter side, because the spouses had community assets but had filed separately, no liens had been placed, saving the client over $1 million! We were able to get the client to pay his personal balance down and establish an Installment Agreement, thus allowing the client to continue his finance options for his newly growing business. This is one of those cases where time really was on our side! Our client is now living debt-free to the IRS and working toward never burying himself again!

1/4 cup cider vinegar

4 lbs pork shoulder/butt

4 garlic cloves, minced

Salt and pepper, to taste

1/4 tsp salt

7 tbsp unsalted butter

1/4 tsp pepper

1/2 cup brown sugar

DIRECTIONS

1. Preheat the oven to 320 F. 2. Season pork with salt and pepper and set aside.

3. In a saucepan over medium heat, add butter, sugar, vinegar, garlic, salt, and pepper. Stir to combine ingredients and wait for the sugar to melt completely. Remove from heat. 4. Line roasting pan with foil and then parchment paper. Place pork on top of the parchment. Pour half of the sauce over the pork, cover with foil, and bake for 1 hour and 15 minutes. 5. Remove from oven, remove foil, and flip pork onto the other side. Spoon the rest of the sauce over the pork, and cook uncovered for 20 minutes or until the pork is golden brown.

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IRS Trouble Solvers ™ ®

100 S. York Road, Suite 214 Elmhurst, IL 60126 www.IRSTroubleSolvers.com 630-832-6500 | 877-4-IRSLAW

1 Embracing Change in Our Traditions 2 How to Christmas Shop on a Budget Preparing Ahead of Time Best Pork Roast 3 Win of the Month 4 How to Impress Visitors This Holiday Season INSIDE THIS ISSUE

IMPRESS THE GUESTS WITH THESE HOLIDAY HOSTING TIPS

The holidays are rapidly approaching, and soon, we’ll share laughs while enjoying the festivities with our loved ones. Before the celebrations begin, you must prepare your home for visitors, especially if they stay overnight. It can be stressful whether it’s your in-laws, best friends, or distant cousins coming to stay with you. You want to leave a good impression, but how do you ensure everyone’s needs are met, including yours? Here are three tips for setting yourself up for a successful holiday, regardless of who stays with you. Stock up on your guests’ favorites. Have you ever stayed with someone who didn’t have extra food for their guests? Don’t put your guests in this situation. Load up your pantry, refrigerator, and cupboards with your guests’ favorite foods and drinks. If you don’t know what they are, ask ahead of their visit! Your guests will

appreciate your conscientious gesture and have a much more enjoyable time if they can eat their favorites while visiting. Prepare a guest room. If your guests are staying with you, you need to prepare somewhere for them to sleep. Make sure you make up the bed, have plenty of pillows and blankets on hand, and provide adequate closet space for their clothes. Even if they aren’t staying in a traditional bedroom, their sleeping area should still be ready when they arrive. Clear off a table for them to use as a nightstand and put sheets on the couch or mattress where they’ll sleep.

too! The holidays are not necessarily the time for this shortcut. Break out the fine china if you have it, or use regular dishes for your guests. It’s okay for the kids to have paper plates, but if you want to make a good impression on visiting adults, nicer dishes will dress up the table setting and meal.

Use real dishes . When we have company over for a meal,

especially a large gathering, it’s usually easier to use plastic or paper options — saves on cleanup,

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