IRS Trouble Solvers - December 2022

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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