ORP, OR LLC UR 2022 TAXES YET?
WIN OF THE MONTH The Devil’s in the Details CASE SNAPSHOT Client: Professional Nanny With a Side Business Type of IRS Issue: Business Taxes Tax Year in Question: 2018 IRS Claimed Liability: $43,380.93 Savings: $40,864. 27 Our client ran an online market, and after seeing a decrease/lack of return on investment, she decided to close up shop. Month after month, she was barely breaking even, and when taxes rolled around, she forgot to include her business in the return. To her surprise, the IRS tracked her down and attempted to obtain the taxes owed. Thus, she came to us with a proposed liability of $43,380.93 from the IRS. According to her 1099 form, she had made much more revenue than what was showing on the return. The problem was that no fees or “Cost of Goods Sold” were calculated into that amount. We urged our client to file a tax court petition to correct the situation. Thankfully, the client kept excellent records, and we could provide the IRS with over 1,000 pages of documents to prove that her actual income was nominal. While waiting for the tax court date, the IRS actually assessed the amount against her (even though the petition was filed timely.) We were then able to provide special instructions to get the assessment removed while we awaited tax court. A special counsel reviewed and was extremely impressed with the documentation we provided, and her final liability was reduced from $43,380.93 to only $2,516.66. We were also able to successfully remove an under-reporting penalty! Ultimately, we were able to provide savings of roughly 90%!
collection statute expiration date (CSED), which essentially is the last day (typically 10 years out) of the collection period for the IRS to collect on the debt. Ultimately, the best way to avoid penalties is to file and pay on time. And if you cannot prepare your tax return by the deadline, apply for an extension. And if you cannot pay
on time, apply for a payment plan. This is because filing for an extension to file doesn’t save you from facing a penalty for failing to pay.
If you find you owe penalties for non- filing or non-payment of taxes, contact us at 206-970-4477. We’re here to help!
INGREDIENTS
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1/4 tsp black pepper 1/2 cup grated Parmesan cheese 1 1/2 cups shredded mozzarella cheese, divided
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8 oz spinach leaves
8 oz cream cheese, softened
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1 cup sour cream
3/4 cup chopped marinated artichoke hearts
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Sliced bread, crackers, or tortilla chips for serving
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1 tsp minced garlic
1/2 tsp salt
DIRECTIONS
1. Preheat oven to 375 F. Coat a small baking dish with cooking spray. 2. In a medium pan, steam or sauté spinach until wilted. When spinach cools, wring out excess water, then chop coarsely. 3. In a large bowl, mix cream cheese, sour cream, spinach, artichoke hearts, garlic, salt, pepper, Parmesan cheese, and 3/4 cup of mozzarella cheese. 4. Spread the mixture onto the prepared baking dish. Top with remaining mozzarella cheese. 5. Bake for 20 minutes or until the dip is bubbly. Turn the oven to broil and cook for an additional 2–3 minutes so the cheese will begin to brown. 6. Immediately serve with bread, crackers, or tortilla chips.
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