IRS Trouble Solvers - September 2022

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SELF-IMPROVEMENT LESSONS LEARNED FROM AN EAGLE A Bird’s-Eye View

IRS Trouble Solvers has been ranked 410 out of 5,000 of the top growing firms in the nation by INC 5000! This is the first year

Unbeknownst to many, urban legend has it that when an eagle

“The Dichotomy of Leadership” by Jocko Willink and Leif Babin outlines how to take responsibility as a leader and lead by example and balance others, your mission, and yourself. When read in conjunction with its predecessor, “Extreme Ownership,” it dives deeper into the craft of leadership, something I constantly strive to improve upon. I’ve also learned to maximize my time spent in the car on my daily commute by tuning into many motivational or self- help programs. Les Brown and Lisa Nichols are two of my favorites. Those 10 minutes put me in a happier and more motivated frame of mind, and in just a short amount of time, there is always a useful takeaway! From a self-improvement standpoint, we have much to learn from yet another behavior of the majestic eagle. When an eagle senses a storm brewing, he catches the wind and flies over the top of the storm to avoid the wrath of it. From this instinctual behavior, we see that in life, storms happen, but we should get above them as soon as we can so we can help out those trapped within it. Have you ever heard about birds that push their babies out of the nest to teach them how to fly? Instead of pushing her babies out, a mother eagle will gradually remove items of comfort from the nest so the babies can make their own decision about when it’s their time to take flight. In life, when it’s our time to jump, just like an eagle, we must take the initiative and go for it; otherwise, we will never test our limitations and explore outside of our comfort zones.

ages and feels as though he has lost his agility or edge, he will fly to the

we have been eligible for this award and are proud and hum- bled by this recognition!

highest mountain top, and to extend his lifespan and strengthen his abilities, he will pluck out all of his old feathers and hit his beak

against a rock to knock it off. Once his feathers and beak regrow, he is renewed and back in the game! Sometimes, we must shed our past in order to move forward and grow. This month is Self-Improvement Month, a month dedicated to setting time aside to work on ourselves — mentally, spiritually, and physically. After all, you are your only true competition in life! Over the past several years, I have had a drastic

change in mindset. I enjoy educating myself, finding new ways to engage my mind, and challenging myself to exceed expectations and limitations I may have unconsciously set for myself. For anyone looking to expand their mindset, unleash their potential, and gain a new perspective on their possibilities, especially as a business owner, I have a few book recommendations. “The E-Myth Revisited” by Michael E. Gerber provides a fabulous walk-through of the three steps to becoming a successful business owner: technician, manager, and entrepreneur or true visionary.

SEPT 2022

Unlike a buzzard who eats anything already dead, an eagle only eats food it kills on its own. Are you an eagle or a buzzard? It’s up to you to get your hands a little dirty and to go after something on your own; in order to fly above the storm, you can’t act like a buzzard! WWW.IRSTROUBLESOLVERS.COM -Ben Golden

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1099 and W-2 Emp S CORP, C CO BREAKING

Inflation can make people nervous about the future. Here are a few smart ways to manage your money in any economic climate — but especially during a recession. 5 SMART FINANCIAL TACTICS TO USE DURING A RECESSION No. 1: Make every dollar count. This year, the price of gas has climbed considerably, but what should you do when driving is part of your job? Dan Varroney, founder of consulting firm Potomac Core and expert on economic performance, told NBC that people can stretch their dollar by utilizing mass transportation, carpooling, or walking. You can also combine trips with multiple stops or shop locally to save on gas and time in the long run. No. 2: Check your spending. The internet is full of trendy subscription-model brands and products, but are you still paying for ones you aren’t using? A 2021 Chase survey revealed that two-thirds of consumers have forgotten about at least one recurring payment in the last year. In fact, more than 70% of consumers waste over $50 every month on recurring payments for things they no longer need! Double-check your statements for anything you might’ve forgotten about. No. 3: Get rid of (or don’t use) high debt credit cards. Canceling a credit card can have some temporary consequences on your credit score, but if you can afford it — or need to remove the temptation altogether — cancel credit cards with high interest rates. Get a card with 0% APR if you need time to pay off new purchases before interest kicks in. No. 4: Boost your emergency fund ASAP. In life, setbacks can happen when least expected — and least wanted. This is the time for cushioning the fall in case you have any large unexpected expenses that could have major consequences on you and your family’s livelihood. No. 5: Roll over to a Roth IRA during the market downturn. Since IRA contributions are invested into the market, the downturn makes it cheaper to transition your after-tax traditional IRA into a pre-tax Roth IRA, which means you’ll keep the full dollar amount of your account in retirement. According to Clark Kendall, certified financial planner and CEO of wealth management firm Kendall Capital, transitioning into a Roth IRA may “cost 20% less if your retirement account is down 20%.”

1099 and W-2 employees — what’s the difference?

When it comes to taxes, whether you are a 1099 worker or a W-2 employee makes a difference. Both 1099s and W-2s are the specific forms your employer uses to report your wages and taxes withheld. A 1099 worker is an independent contractor or a self-employed worker, such as a freelancer or gig worker, while a W-2 worker is employed by the company directly and receives both benefits and regular pay. 1099 workers and contractors will receive a 1099 form to report their annual income for taxes, and W-2 employees will rely on W-2 forms to report their income along with the taxes withheld from compensation.

Generally speaking, a business may hire a 1099 worker to work on a specific task or project as outlined in a contract, and their hours are typically flexible, defined by themselves. In some cases, 1099 workers may outsource the work to others

No-Fuss Chicken and Rice Soup

Inspired by RecipeTinEats.com

Put these tips in your back pocket — they just might help get you through any economic climate!

Fall is almost here, so it’s time to break out the soup! Your family is sure to love this recipe — it’s a classic.

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ployees Explained ORP, OR LLC G IT DOWN Win of the Month SALE OF BUSINESS CREATES AN IRS NIGHTMARE

CASE SNAPSHOT

to help them deliver a high volume of production. In many cases, 1099 contractors may complete work for several employers at once and are considered to be self-employed. Thus, the employer does not withhold or file payroll taxes — they pay their own taxes and provide their own benefits. A W-2 worker is an actual full-time or part-time employee of a business, and they adhere to company policies, schedules, and protocols. In many cases, they participate in benefit programs that provide health, vision, and dental insurance; paid time off; and even overtime pay. W-2 employees are guaranteed minimum wage.

Client: Frustrated Businessman Type of IRS Issue: Personal Tax Audit Tax Year in Question: 2020 IRS Claimed Liability: $3,048,324.02 Savings: $3,048,324.02

Employers with W-2 employees are required to withhold Social Security and Medicare taxes

Our client, a very successful but highly frustrated businessman, came to us in desperate need of relief from his IRS nightmare. Having sold several businesses during the tax year in question, his accountant asked for an extension so he could properly prepare the returns. A fairly complex tax return was completed and filed, including the check for the very sizeable taxes that were due. His accountant double-checked everything, then mailed it in.

and to file payroll taxes. Essentially, if a worker does not meet the classification

of a 1099 contractor, they are considered a W-2 employee by default.

End of story, right? Wrong!

The issue? The IRS claimed that the taxpayer did not file on time, which led to a $2,986,040.50 “failure to file” penalty, $62,353.52 in interest for late payment, and adding insult to injury, a $30 “late payment” penalty. Not knowing what to do, the client reached out to IRS Trouble Solvers. After a careful review of the situation, including combing through all the documents to ensure there were no further underlying issues and obtaining proof of the submission of the returns, our tax professional got down to work. Our specialist was diligent in working with the IRS and provided proof of filing and payment on time, which only led to more frustration. It was clear with the documentation he had that the client DID file and pay on time! However, this only made him even more determined to win. He was diligent and escalated the issue up the chain of command at the IRS. Finally, after reaching some of the upper layers, he was able to submit the receipts that showed the payment and return were both mailed on time, and therefore, the penalties and interest were unreasonable and should be canceled, to which the IRS finally agreed! But that’s not the end of it — we had to pull the tax advocate into the conversation as the penalty abatement was taking longer than it should. But finally, after months of aggravation and stress, we were able to inform our client that the additional $3 million-plus in taxes was abated and he did not, in fact, have to pay them. Our client was truly doing the happy dance!

INGREDIENTS

• • • • • • •

2 tbsp olive oil

• • • •

1/4 tsp pepper

1 onion, chopped

4 cups chicken broth

2 garlic cloves, minced

4 cups water

3 carrots, sliced

1 1/4 lbs bone-in, skinless chicken thighs 1 cup uncooked white rice

3 celery ribs, sliced

2 chicken bouillon cubes 1/2 tsp dried parsley

• •

Salt, to taste

DIRECTIONS

1. In a large pot over medium-high heat, warm the olive oil. Add the onion and garlic and sauté for 5 minutes. Add the carrots and celery, then sauté for 1 more minute. 2. Add the bouillon, parsley, pepper, chicken broth, and water. Stir, then add the chicken thighs. 3. Cover and simmer on medium-low for 30 minutes, then add the rice. Stir, cover, and simmer for 15 more minutes. 4. Remove the pot from the heat and transfer the chicken to a large bowl. Shred the meat and add it back to the soup. Discard the bones. 5. Stir, salt, and serve!

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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 Self-Improvement Month 2 Prepare Your Wallet for a Recession Understanding 1099 and W-2 Employees No-Fuss Chicken and Rice Soup INSIDE THIS ISSUE

3 Win of the Month 4 Don’t Cross Your Cords!

TANGLED UP IN CORDS?

3 TIPS TO MAINTAIN YOUR ELECTRONICS

Protect your cords. Smartphone and laptop chargers aren’t cheap by any means. Since we use them so often, the cord that attaches to the device is susceptible to

Technology was created to make our lives easier, and though it simplifies our daily routines, it can be a hassle to maintain — especially if there are

cords involved. Keeping the power flowing to multiple devices requires a plethora of cords that can get tangled and annoying. Also, as time goes by, cords may break or simply stop working. Organizing and preserving the quality of your electronics is the best way to extend their longevity, and with these tips, you can save a few headaches along with some money. Tidy up your cords. When you have tons of cords and cables attached to your desk and power strips, they can become a tangled mess. You end up pulling the wrong cord because they all look the same, and it’s a pain to figure out which is which. A great way to fix this is to use binder clips! You can clip them onto your desk to keep cords separate and in one place. Take it up a notch by using colored/patterned binder clips. Assigning specific colors to certain cords lets you find the one you need at any moment.

fraying and breaking. If you have some painter’s tape lying around, take a small piece and wrap it around the cord close to the connectors on both sides! The tape acts as a brace and keeps your charger cord sturdy.

Organize extra cables and cords. If you’re like most people, you probably have a bag or box of tangled wires and cables somewhere. It can become an organizer’s worst nightmare, but there’s a better way. First, find an old shoe box and several empty toilet paper rolls. Then, place the rolls upright in a shoebox, wrap each cord up separately, and place them inside the rolls (one per roll) to keep them separate but together. Maintaining our electronics, especially the cords, allows our technology to continue working for us without worry or breaking the bank. Try these hacks and watch how untangled your cords and life can be!

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