CASE SNAPSHOT Client: A Worried Couple Type of IRS Issue: Personal Income Taxes Tax Years in Question: 2021 IRS Claimed Liability: $379,346.00 Savings: $378,014 or 99.6% One CP2000 Notice, One Big Triumph! WIN OF THE MONTH
includes tuition, course materials, and even required books, and if the credit brings your tax bill to zero, up to $1,000 is refundable! S AND TAX BREAKS ck-to-School Season The Lifetime Learning Credit (LLC): If you have a student who’s past year four, going part-time, or taking graduate courses, the LLC offers up to $2,000 per tax return for qualified education expenses. It’s not refundable, but every bit helps. 529 Plans: While it’s not exactly a deduction, contributing to a 529 college savings plan grows your investment tax-free. Withdrawals used for qualified education expenses are also tax-free. Some states even offer tax deductions for contributions.
Pro Tips • Always save your receipts and Form 1098-T (the tuition statement from the college). • Expenses paid with tax-free funds (like scholarships) usually can’t be double-counted. • If your student is working part-time, consider whose return to claim them on; you might get a better deal keeping them as a dependent. So, as you stock up on binders and send your kid off to campus, take a moment to sharpen your tax toolkit. With the proper planning, education can enrich your child’s future and put some extra cash back in your pocket.
At IRS Trouble Solvers, we love turning tax nightmares into success stories — and this one is a showstopper!
DIRECTIONS
A couple in their early 50s came to us after receiving an IRS CP2000 notice proposing a staggering $379,346 in additional taxes, penalties, and interest for 2021. After a deep dive into their return and transcripts, our team discovered that the sale of their primary residence and several smaller 1099s were omitted from the original filing. The good news is that the homeowners qualified for the Section 121 exclusion, which meant the gain on their home sale was not taxable. We reconstructed the return, submitted the proper documentation, and the IRS agreed.
1. Preheat oven to 375 F. 2. Halve peppers lengthwise; remove and discard seeds.
3. Place peppers cut-side up in an 8-inch-square microwave-safe dish. Microwave on high 2 1/2–3 minutes until tender; pat dry and sprinkle with salt. 4. In a medium bowl, whisk together eggs, milk, and black pepper. 5. To a medium skillet over medium-high heat, heat oil, then add onion and cook, stirring, for about 2 minutes until softened and beginning to brown. 6. Add spinach and cook, stirring 1–2 minutes more until spinach is wilted. 7. Divide spinach mixture evenly among pepper halves. Sprinkle with feta, and top with egg mixture. 8. Bake 30–35 minutes until filling is set.
The final liability was just $1,332, and the savings were $378,014 or 99.6%!
This case is a reminder that the right tax team can make all the difference. Congratulations to our team and our relieved clients on this incredible resolution!
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